the asx down by 5%, the lowest since november 2020.. ♪ annabelle: we're-our into the trading session for japan, south korea and australian, and it is a risk-off day. not only are investors continuing with inflation fears, another line dropping on the terminal that shanghai's district is planning additional covered testing. so these continuing lockdown fears and china also adding to fears of this part of the world. we are seeing the nikkei come online into his third straight day of losses in dragged lower by tech names. the dollar-yen heading off the 135 level we have in watching. we have seen the boj sticking with plans to maintain yield curve control and announcing additional bond buying operations. meanwhile we are keeping an eye on the three year yield. we are seeing it move higher again. it did jump the most in a two day session since 1978, so some significant moves here. shery: for more on the latest, let's bring in garfield reynolds and ruth carson. let me ask you about what you want to talk about because there is so much happeni

asx 200 down .1%. softbank hosts this annual shareholders meeting friday. confidence may be at a breaking point. let's bring in our asia tech executive peter l stremme. -- peter ellstrom. peter: is going to be a tough shareholders meeting for the founder. he founded the company four years ago. his investors and japan have typically been his most faithful, supportive. but these have been trying times, largely the tech meltdown has taken a toll on his portfolio. he invested aggressively in hundreds of tech startups including many money-losing startups that have been losing on the stock market. koopang in south korea was a big investment, didi in china has had a rough year, and many more that have been difficult. he reported losses for the fiscal year that just ended that of the largest ever in his history. now come investors have tough questions. paul: is this it for write-downs? could we see more down the track? peter: certainly. there is going to be a lot more write-offs if the market continues in the

asx is up.ng yields in australia and the rest of asia because global yields are under pressure given the haven demand. we have seen treasuries rally, the 10 year yield hovering around the 315 level given the concerns about recession. haidi: let's check in on how futures and europe are opening up this morning in stoxx 50 futures are down's extensive a percent. the tune of the same when it comes to the msci europe index. down by half a percent. we did see stocks in the previous session paring earlier declines after we heard from fed chair jay powell saying they would raise rates to runaway inflation. but we are seeing their concern that with inflation pressures looming with fears, that the pressure margins for european stocks would herald another downturn. both in estimates at in prices. we saw european stocks napping the three-day rebound on the concerns about the broader global recession there. so in particular, watching a minor in energy names given they were the big losers and continued to ext

eyes on the asx 200. futures point to a moderately brighter start but we did close the financial year with a 10% drop for the asx 200. in japan we will be keeping an eye on the end. we were nearing -- on the yen. that 137 out of play for now. we have chicago nikkei futures coming online, fractional weakness at the start. >> we have seen strength in the dollar. the best quarter since 2016. really having to do with haven flows, higher rates as well. u.s. consumer spending really today falling for the first time this year. we are seeing u.s. futures under further pressure in the asian session after the s&p 500 lost ground for a fourth consecutive session. we are talking about the worst first half since 1970. tesla seeing its worst quarter ever. amazon seeing its worst quarter since 2001. the 10 year treasury yield fell below 3%. what a reversal after the decade high of 2.5%. just a few weeks ago. we have seen the downside on oil prices. right now we are seeing a little support. still around the $106 a barrel

australia, asx 200 unchanged at the open.o wait about 10 minutes to see full price action. aussie u.s. dollar in focus, moving flat. asx 200 4/10 of 1% to the upside. mostly unchanged. aussie dollar at the strongest since april. tracking gains in brent crude. lines are from opec. in korea, watching after the fastest rise in price pressures in 13 years and we are watching the one. a code to see a sharp move to the downside not reflected in trade yet so far. shery: let's discuss market action with our next guest. the head of investment strategy at bank of singapore, eli, which markets are you concerned about and could there be upside when it comes to commodity exporters like australia? >> markets in europe look particularly vulnerable now. they are in the eye of the storm and there is a difficult conundrum between inflation and a challenging growth outlook. [indiscernible] overall i think investors should brace themselves for more volatility ahead. shery: what about the chinese stock market? recently there has been a little bit

futures coming online are flat on the asx 200.he slide in brent crude in the previous session dragged down the energy sector. also the electronics sector is the biggest weight on the nikkei. brent crude is relatively flat at the start of trade. recession fears continue to be the overarching theme. we heard from jerome powell, that we could see inflation being something that will weigh on the fed. on the board now, what we have seen in stocks for the past quarter, because we are near the end of the month and near the end of the second quarter as well, and we can see that the weakness in the yen has helped the topix a little bit. but particularly the kospi is down, saying that foreign cells are a factor. shery:. shery: perhaps it is the quarterly rebalancing of portfolios that is adding to the choppiness. even the u.s. futures not doing much in the u.s. session, finishing almost unchanged. really a lot to digest as well as central bank speak. we saw the 10-year yield falling towards the 3% level. we also had weaker than expected dat

asx 200 is pointing to a big lost. we are watching how brent crude comes online in the next hour. also, metals prices. wti is fairly steady at the start of trade. month-end rebalancing is another factor. in australia we have the likes of certain companies being we could see a move from portfolio investors into undervalued stocks. recession fears have also been weighing on the dollar, pushed up the most in a recent week. we have the yen and changed that, but we could be in a wait-and-see mode because we had consumer confidence numbers from the u.s.. we also have lots of numbers still to come. gdp data, construction spending, and also manufacture sentiment. shery: yes, but at least today, investors seem focused on the consumer confidence number, sinking to a 16-month low. home price growth decelerating. almost no rebound for u.s. futures at the moment after we saw the rare sighting in the s&p 500, the three-percentage point reversal, only the 11th time since 1990 that has happened. we have a lot of optimism with china cutting the quarantine period. big wall street banks boosting the

dollar as we see the asx 200 moving .4 of 1%.ring in our next guest who has gradually moved into issue growth in the last few months. had of -- head of apac strategy. it is interesting you are moving back into growth because so far the chart on bloomberg has shown value as been feeding growth in asia so far. the outperformance has waned. give us your rationale behind this rotation and why you were moving back into growth? >> we are doing it very gradually. we are facing growth sectors and growth stocks. it is starting to disappear. i think we are in a situation where markets are going to talk with lower inflation going forward and numbers are starting to come down. i would not be surprised by the end of the year we are talking about [indiscernible] so that is a significant shift in market dynamics and it is favorable for growth. while at the beginning of the year, we have gradually moved were growth and we will continue that for the remainder of the year. shery: in a week like this one where we have so many monetary policy moves,

turning onto westerly, asx 200, staggered start, a few minutes to come online.ears a major factor of markets this morning, the australian government saying inflation could breed 6% or possibly beyond that as well. aussie and kiwi bonds 11 up to treasury yields, kiwi added 10 year high. shery: our next guest says is your growth prospects are better than those of the west end is increasing exposure into the region. let's bring in the head of research jim mccafferty. you are still downgrading korea to neutral. is that you do with external exposure? what exactly do you mean? >> i am in singapore right now it we have been hosting our annual conference. we have had analysts, corporates , so we are in quite a good position to determine what is going on. economics is one thing and stockmarkets are another. if you think about south korea it is very much geared toward exports and the stock market reflects that. big companies like samsung, lg, these are major exporters. if you look at china, the composition of the stock market is made up of big domestic companies which hav

the asx 200 moving higher.e dollar just a little changed, slightly stronger against the greenback. vonnie: with the risk of a recession increasing, our next guest says equities have increasing exposure to asia-pacific assets. joining us is rajeev de mello. do i take from that you have decided we haven't seen the bottom? that whatever we get in the next few days is short-lived? >> thanks for having me. i agree. we might have a little short-term bounce as we have in bear markets, but we are pretty much in a bear market and that is set to continue. the fed remains hawkish and we don't expect the fed to change its tone. it has signaled another 75 basis points and a series of rate hikes for the next sessions until the end of the year. it's going to be big headwinds for the equity markets to overcome. vonnie: when do you anticipate we will see the worst dr. peetathawatchai what -- the worst? jp morgan is saying there are two halves to this year and the second half will look better for these asset capitals. >> i would

we have the asx 200 with the plunge after the weekend the kospi has a few other things to worry about down .46%. the trade war in exports with the semiconductors will be impeded by the trucker strikes and the overseas activities like samsung. we go to chinese stocks. you are seeing an impressive rebound from early morning losses shanghai closing 1% higher he and limping up after the pull back up 0.2% hang seng closing flat to the upside with the hang seng pairing about a being from early losses and making things respectable at the tuesday close. dom. >> thank you, jp now to the trading in europe julianna tatelbaum in london >> dom, good morning markets have been open for two hours and a lot has happened in the window we started trading higher. stoxx 600 at one point up 1% things have turned south w we have red on the board for the french market. the german market down 0.1%. we were up a .50%. ftse mib down. the swiss market has been under performing it is down 0.81% ftse 100 is holding on to gains. we are up five basis points. from the sectors, this will give us insight banks are the

shery: take a look at the asx 200 trading. that half-and-half look for utilities and energy gaining ground. remember, oil actually climbed in the new york session with broad risk on sentiment. perhaps being weighed down by a consumer discretionary and tech stocks. oil also losing ground in the asian session. now at around 108 dollar level. this as we continue to watch the latest on the rba with governor lowe saying that interest rates are likely to rise by 50 basis points at most in july. the markets across asia are mixed. the nikkei is up, the kospi is down. we will continue to watch for the trade is headed. coming up next, we take a look at lingering concerns over food security in china as officials try to balance output while try to balance output while -hi, i'm smokey bear and i made an assistant to help you out. because only you can prevent wildfires. -hey assistant smokey bear, call me papa bear because i'm "grrr-illing" up dinner. haha, do you get it? -yes. good job. -so, what should i do with all of these coals? -don't

australian futures are also looking lower, the asx yesterday tumbled the most in more than two years.ne analyst weighing in and saying that we can expect more market shocks set to continue. the yen, very much in focus as well because we are past the 135.1 nine mark, the first time in 24 years -- 135.19 mark, the first time in 24 years. that is the level that could force the boj to intervene and change the course of their policy direction. haidi: you can see the complete disintegration in sentiment and confidence. you talk about what we are seeing across equity markets or across-the-board markets, it is the fear of stagflation. take a look at this new survey from bfa, showing us that stagflation fears have surged the highest since the 2008 financial crisis. global growth optimism meantime, has plunged to record lows. liberal growth expectations also dropping. -- global growth expectations also dropping. we are talking the likes of lehman brothers, the bursting of the dot-com bubble, not great events to be setting precedent in terms of the level of sentiment-dipping that we are seeing n

and while, the s&p and asx 200 down around 5%. we are seeing a bit of a catch up late this morning because we did have the markets sharp for a public holiday. risk aversion is the theme of the day. yvonne: let's get first word news with vonnie quinn in new york. vonnie: the bank of japan governor said it's bad for the economy. he closely worked with the government hours after the yen hit the lowest level since 1998. the depreciation of the currency is fueling concerns among households and amplifies the surge in energy and commodity prices. u.s. national security advisor jake sullivan and china's -- have held talks with taiwan. the white house is the to discuss regional and global securities. the senior u.s. official said the yen rate in washington's one china policy expressed concerns about the actions across the taiwan strait. the imf said pakistan needs to further strengthen its budget to access loan health. pakistan is denying $100 million payments to help avoid the potential default. the government will trim its deficit goal w

we have the asx 200 futures pointing higher. we will be watching the energy sector this morning as we have just seen the power market resume sports trading. the regulator had taken control last week. new zealand coming on line to the upside. nikkei futures, reflecting the recession risks. also have implications for yen trading. we have mizuho bank pointing to a recession risk, speeding into haven demand, a typical play for investors. scotia bank says that unless we see energy prices study, we will continue to see demand for the yen. and others saying that the yen is simply following the two-year sovereign interest rate differential. haidi: and we continue to really watch these recession fears amid soaring inflation and tighter monetary conditions. we heard the most explicit signaling yet, the comments from fed chair jay powell, saying that interest rate hikes could tip the u.s. economy into recession, saying that it is possible and also calling a soft landing very challenging. he paints a picture of being stuck between a rock an

asx 200 futures are looking flat.hat could move the needle is the economic data we have coming out. we have japanese and korea industrial production numbers. but recession fears are the overarching theme here. a big drag in the materials sector in australia, the electronics sector in japan. it has also been prompting more demand for the dollar. that dollar-yen has been a proxy for where treasury yields are heading since the tightening cycle. our strategists now say it is unlikely to reach the 140 level. it is the quarter-end, and also the month end. the weakness is a boost for japanese stocks. they have not lost the same as we have seen in other markets. the biggest outflows are in the kospi, down 14% this quarter alone. a lot of foreign selling. it is feeding into the weakness we are seeing in the won. haidi: you talk about the recession risk, this is also where we are seeing bond traders at the biggest banks in the world now slashing risks. we are seeing some investors trapped in these trades at a time when we know

they are weighing the overall asx 200. another big movement for market washers -- watchers in asia, the japanese yen it is at a fresh two-year? -- two decade low. the finance minister and we have heard from the governor in the last couple of hours think they need to enhance financial stability. this as we see diversions with the boj. they are staying in terms of that easing mode. dani: thanks very much. we will be talking to simon harvey in a moment about all of those fx moves. bloomberg's commodity spot index has also hit another record, a record high. attracts prices for 23 rom materials last peaked in april. food and energy supplies afield the strain of ukraine. let's bring in bloomberg's energy commodity edward -- editor. it was all about food prices but now it is all about energy. >> that's right. the gains today were natural gas. there's a lot of pressure on both energy and food at the moment. the two big things at the moment is china putting the worst of the virus behind it. demand is going to come back there. also

high yesterday looking good and on the rebound in the commodities space, you're seeing australia's asxe point or percent -- one rishaad: .4%. rishaad:taking a look at australian bonds. you can see the move to the upside for the two-year at least we are witnessing that there. the yield now, we've got the yield down to the point 2%. essentially, we have got the rba governor, phillip, talking earlier and taking 75 basis points as the next interest rate hike off the table. and as a consequence, we are seeing a bit of strength in the bond market, i.e. yields moving to the downside. we've got a huge interview for you later on with us on bloomberg. were going to be talking to tesla ceo elon musk. he is going to talk at the economic forum tuesday. those are the times. we will talk about his plans for twitter, tesla and beyond. ♪ psst. girl. you can do better. ok. wow. i'm right here. and you can do better, too. at least with your big name wireless carrier. with xfinity mobile, you can get unlimited for $30 per month on the nation's most reliable 5g network. they can even save you hundreds a ye

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we saw a pretty rough week for the asx 200. dropping around 6.6%. we are seeing it on the downside.ns for the banking stocks. the aussie dollar looking a little bit higher against the greenback. there is the value we are seeing. that is because pressures are pointing to the downside. particularly sharing with those particular covid docked as we are seeing in china. >> we will continue to watch the markets there. this is just before another onslaught, repricing starts again. good to have you with us. tell us a little bit about how you are managing this volatility. >> it is difficult because you are at the bond market. it is quite astounding. i have never seen yields move in such a fashion. that is difficult, looking at stocks and trying to make some semblance of normality out of this. markets are looking at inflation. all of this as it continues to drive rates higher. no matter how much higher the fed continues, the market still continues to price higher inflation. that is one of the biggest problems. that is the worst case for everyone when you think about it. unless we get some typ

in australia, the asx 200 starting on the downside, but we are seeing yields move in the opposite directioneeing in the global bond markets. you can see the difference we are seeing with kiwi bonds, and at these two typically move in tandem. it will have to catch up during the session. haidi: as central bank around the world opt for jumbo rate hikes despite hot markets, we are seeing markets betting that the bank of japan starts taking steps as well. bloomberg economics and policy editor kathleen hays is here. some traders suggest governor kuroda will give in to pressure, but others say he won't when it comes to the need for easy monetary policy with the sustainability wage growth and inflation rise. you have been watching the boj, what are you watching today? kathleen: certainly the initial statement. and the press conference today. we know that governor kuroda is going to get some great questions. we are going to learn more about his thinking on what has changed and what hasn't. but you have to realize, in japan now, there is pushback against inflation, against the yen following. this is

with a check on australia and the asx 200, just recovering some of its losses that we softer the biggestonths. bond yields looking little change. more commentary coming through on the rba's 50 basis point hike. the willingness of the central bank in australia means that we will see a peak in the bond selloff in the third quarter. haidi: both the japanese and korean opponents will see it recover from the weakness. let's talk from the outlook for the rest of 2022. it's a great of hope for a courier and we see exports potentially at risk. kathleen: we just spoke with their world bank author about how china's slowdown central bank is in asia as well. let's start with japan. the easier it is to export your goods to the rest of the world if they still have enough money in their pocket books to purchase them. what happened with japan's gdp number is only when it got revised from -0.1 so i to 0.2. this investment actually fell and was -0.7% and came down to a gain of 0.5. we can only assume that it recovered from the covid outbreak, trying to get back on your fee in terms of reducing and strictn

australian continues to extend marginally those gains that's all the best day in about five men's for the asxabout .2% as we see gains for the kospi as well. energy stocks in particular seeing some pretty robust gains as we continue to see gains. the rebound in crude as well as the g7 meeting to decide putting a cap on russian crude prices. kathleen: let's dive deeper into china's property sector as it continues to miss bond payments at a record rate. china credit editor kevin kingsbury joins us from hong kong. what is the latest in this ongoing financial soap opera, if you will? kevin: it is obviously one of the latest avella purse to run into trouble. it is the fourth largest in sales. in may they first defaulted on dollar bond. last week the key onshore unit said it would probably not be able to make a principal payment on a bond already extended three months ago. monday the company said there are some revised terms we would like bondholders to look over and approve so we do not have to put out so much money both on thursday went an initial bond payment is due and then again september 30.

we continue to be watching the asx 200 as we have the rba rate decision.es. we are seeing on most every sector and the read right now, industrial leading the declines in materials unchanged at the moment, kiwi stocks are down after coming back from the holiday. the kospi is down 1%. we are watching the korean won that weakens against the u.s. dollar, 1256 is the level. >> checking in on how futures are opening at the moment. we have not much of a reaction when it comes to the powers after we had the release of the boris johnson victory. growth worries continue to weigh. look at your futures looking at 6/10 of a percent lower. msci europe is positive. we did see europe and equities rebounding and decline the optimism of chinese in covid-19 curves. quite a bit of risk on sentiment in the previous session as that loosens restrictions and beijing really increasing the economic act committee that will pick up, particularly given china is a big trading partner with europe. dax futures sitting softer and it's down about 3/10 of 1%. we are looking ahead for a pret

tech stocks he talked about crude hstech in excess of 2% right now, but of course, we have the fti and asx.58. we are keeping a watch. 13135. rishaad: ok. well let's get a little bit more on all of this. senior editor richard frost is with us now. and richard, we are seeing industry groups barring financials in fertility's on the way down. and utilities. -- and utilities. the lifting of lockdowns or partial looking lockdowns in beijing. richard: if you track what the csi 300 has been doing, it does go alongside a sort of return of extremely cautious optimism. things are not as bleak as they were toward the end of april when the market was tanking and there was fear of lockdowns in beijing following shanghai. there still remains a lot of caution. we have data out, services data which is poor. we also had week and spending by mainland tourists over there come a long weekend. the city was quick to note that it was not quite as bad as the start of may, so there are signs of some sort of fledgling recovery. rishaad: every time you think you seen the bottom, there's the next thing. richard: it d

changing out to the open we have for are still your, the asx 200 also coming online to the upside hereelief rally taking what we saw from the wall street session and we continue to watch the yield space tracking those moves that we see an treasury. haidi: the fed delivering its biggest interest rate hike since 1994, promised to bring down inflation even if economist questioned if it could be done without causing a recession. our global economics and policy editor kathleen hays is here. the question is, is the fed being aggressive enough? kathleen: is true as to question how much the fed will do at the next meeting. jay powell said we are going to watch the data, purposely avoiding being to clear are predicting exactly what the next hike is going to be, but he did make it clear the decision between 50 and 75, and it will put them in a position to better gauge just how fast they have to go. here's what jay powell said at the press conference after the policy decision. >> to -- 75 basis points today, i said the next meeting could be about a decision between 50 and 75. that would put us at

changing now to the focus in australia, the asx 200 was slumping yesterday to the lowest level since20. we can start, it is a stagnant open. still focusing on these yields as well. that three year yield in particular, watchmen it had commentary out from the rba government still low, it turned hawkish saying we would need the central bank to take an aggressive stance to really have that 7% inflation rate with goldman sachs changing -- changing its forecast for that. now seeing half-point hikes in august and september. just some of the factors we are watching this morning. of course the focus on the fed here. shery: our next guest says asian markets are likely the best position among major economist, including europe and the u.s., in this environment. with us now is the asia-pacific strategist at invesco. is this asia outperformance call based on the covid recovery, how is that start and stop the reopening haidi mentioned earlier on does threaten the economy? >> we have seen the worst of the omicron spreading in asia and china, we are not out of the omicron woods yet, and i think the w