hopefully getting a decision from the bank of japan. mberg. ♪ david: the end of april on the left, a snapshot of what used to be a frothy valuation. we have seen earnings revisions get rolled over. that's why a lot of banks are coming in with earnings today. 170 companies are coming out today. even if this is a cheap market, why aren't investors jumping on this market, which seems like a 10 on paper. sophia, i will start with you. it is puzzling people why this market has not moved. what is the good news? >> fundamentals are finally improving. this is something people have been waiting for. the market was running ahead of that. what we saw in april was the unraveling of their reopening trade and nothing to replace it. the economy was not good enough to get people back into the market. the onshore market didn't replace the funds of that left in april. the reopening trade from october through march was through the fast money and hedge funds. because sentiment is weak onshore, you don't have the cues from mainland investors saying they beli

that is clearly not the case and that is not the bank of japan's dial. ant to proceed slowly considering this policy rather than abruptly changing it just because the bank of japan governor has shifted. but it is interesting. tom nailed it on the head when he alluded to the fact the bank of japan seems to want optionality more than anything else. they are probably open to that idea. they recognize they are behind in terms of the tightening cycle globally. they just do not want to paint themselves into a corner, especially if things start taking a turn for the worse in the global economy. tom: meanwhile at the fed, the situation seems more challenging. when we way up the data from yesterday, the jobs market remains tight, inflation is still high. the bank system stress is still there in terms of emergency lending from the fed. does may still -- is it still locked in? is it still pricing cuts by the end of this year? kristine: it is a question of which fed we are dealing with. are we dealing with the may fed or the future fed? with the may decision, that is

market players have been waiting for the bank of japan's first meeting under its new governor. licy makers say they'll continue long held monetary easing for the time being, but they also plan a review of their measures. the central bank is keeping its short-term bench mark interest rate in negative territory, and it aims to keep long-term rates around 0% by purchasing assets. the bank is also continuing its policy on ten-year government bonds preventing fluctuations of plus or minus 0.5%. that was set by the former governor. the bank has had to intervene multiple times to keep it within that band. the policy makers also say they'll launch what they call a broad prospective review. they say the process could take a year or a year and a half. the central bank adopted it's easing money policy after japan fell into a deflationary cycle, and it has been applied off and on for 25 years. ueda says it will take some more time until the bank can say it reached its inflation target of 2%. he also says he plan to reflect the results of the review in the bank's policy. >> translator: when

more dovishness from the bank of japan. dollar/yen up 1.2% market participants says one crowded in trade is the dollar down side on back of the dovish meeting. >>> this is the picture for asian markets. in addition to the nikkei which is up 1.4%, we are seeing a bounce in the chinese markets. hang seng up .60%. shanghai is up as well broadly risk on with wall street yesterday and in line with some of the earlier price action in the european session today >>> china's largest banks ramped up the yuan with russia in the middle east. that is according to the analysis from the biggest lenders. this as beijing is looking to gain a bigger share of global payments erik nielsen is still with us from unicredit erik, if i look back, china and u.s. relations are nowhere near central stage as the trump era yet, relations with the u.s. and china are no better. how do you think about that relationship between the two economic super powers and where does it go next? >> i worry a lot i think one of the take aways from the imf meeting two wee

conceding to fight inflation coming down or the bank of japan normalizing. one of the two has to happen this seems to be a dovish signal with the current conditions extending and some sense we avoided a banking turmoil here the yen might have a window of weakening further broadly speaking i see a firmer yen over the coming 6 to 12 months as i see the converge trade playing out the yen will fall quite a bit in the next 12 months. >> john, when you look across the space, where do you see the compelling trades? >> a great question. a lot of uncertainty now this sounds like me weaseling out here it really depends on the run-up in the fmoc meeting. the tension between we are worried about a crisis with the banking turmoil here it does mean not just the banking turmoil, but the credit crunch will be a slowing of the economy. it is a frustrating wait we will see what companies are saying with the guidance i see room for dollar weakness just afraid to jump on that aggressively or try to ride it for too long at this part of the cycle. >> hopefully we get

paul: the new bank of japan governor ueda might be signaling no adjustment to a key policy tool, but s decision is still a close call. kathleen hays is in tokyo with the latest. why is bank of america arguing that a shift in the boj' yield curve control might still be possible? kathleen: at least under discussion, at least on the table is something they have to look at very seriously. one of the reason so many traders, investors and economists are saying it will not happen is because governor udea, everything he has said in parliament this week, he is giving signals inflation will peak this year and then come back down below 2%. even though it is rising and i stayed well above target for any key measures of the last 12 months is not something it looks like will change his mind. what we are looking at now is what people are seeing coming up as the next step when it comes, and you can see the most likely thing -- tweak four to guidance. we heard from somebody today that there is a very subtle changes that could happen there. scrap why cc is another one, and widen the band. the fact that

now, the man who led the bank of japan during an era of ultra loose policy has spoken to the media forhe last time as the central bank's governor. c he steps down on saturday says although he couldn't achieve the inflation target the trends appear to be moving in the right direction. >> translator: i can say that we have made steady progress towards the sustainable and stable realization of the price stability target. in this way, large scale monetary easing has had various effects, and i think our policy management was appropriate. >> kuroda announced a bold monetary stimulus program in 2014 which he said would lift the inflation rate to 2%. the boj stepped up purchases of japanese government bonds and pumped in liquidity into the system. that continues to prove elusive. >> tralator: it's regrettable that the boj couldn't achieve its 2% price stability target in a sustainable and stable manner. >> kuroda also expressed confidence in his successor. >> translator: i expect the next governor will demonstrate his ability to stabilize prices and the system, which is the bank of japan's mis

bank of japan likes to keep us on our toes. re not an we do think that e control will potentially go the way of the dodo and become extinly by the end of the year but there has been economi. but also in terms of wages running lower and eventually headline inflation as well. yield curve control as a policy, we will add to potentially by the end of the year. shery: anthony doyle, head of investment strategy at fire trail investment. get a roundup of the stories you need to know to get going in today's edition of daybreak. terminal subscribers go to dayb . available on the bloomberg app. customize your settings so you only get news on the industries and assets that you care about. this is bloomberg. ♪ paul: let's get a quick check of the latest business flash headlines. intel shares jumped after the chipmaker promised a recovery in the second half leading forecasters to look past a disappointing current quarter. the company predicts a return to cash flow in the second half and says margins should widen. intel painted a more opt

bank of japan officials are said to be wary. the biggest banks on wall street raked in gains last quarter. australia is set to release the findings of a central bank review. >> u.s. futures under pressure. this after we had some sideways trading in the new york session. fluctuating between gains and losses. not to mention corporations in the u.s. the fed's beige book would show the u.s. economy stalled in previous weeks. the previous beige book that came out -- we had treasuries falling across the curve. the 10 year yield around the 360 level. the selloff coming through after what we saw, given that u.k. headline inflation came in above expectations. there are more bets the boe will continue to tighten. oil below that $80 per level. the oil weekly report in the u.s. showing fuel demand is stalling. morgan stanley rising a little bit. take a look at how tesla is trading after hours. we are seeing a little bit of pressure. profit being squeezed. free cash flow fell to a two-year low. we are continuing to watch how investors are rea

of rate hikes and shocks on the banking side of things. gdp numbers from south korea, it is something which is anticipated this friday. it is the bank of japanzuo ueda delivering his first policy meeting, watching for any signs of tweaking of the ycc. yvonne: he is live in the parliament right now talking abed underlying price pressures. he said for the boj to outline policy if inflation hits to percent. we have seen that in the last few quarters and it remains above 3%, zahra toby a key question of how sustainable this has to be for the boj to shift more into normalizing policy. we will watch for price trends to set monetary policy and they continue easing for the price outlook. we expect cpi to start slowing down. rishaad: earnings are the key here, and u.s., we have got a slew of them. big tech. alphabet, meta, intel, snap. apple coming out on may 4. we have a lot of impressive gains in this industry grew been a lot of excitement surrounding ai. it is the biggest drop since 2009 with businesses curbing spending on software cloud. yvonne: tech is the new ai play, or that is the big buzzword in tech companies. it is not going to be quiet in

annabelle: bank of japan officials are weary of tweaking their yield curves soon after the banking crisis overseas. , the biggest banks little signs of strain. shery: australian -- australia said to release the findings of an independent bank review recommending a split board handle monetary policy and governance. u.s. futures under pressure the open in the asian session. we lack clear direction in today's session, finishing almost unchanged. we had investors gauging corporate earnings. we've got the fed beige book showing the u.s. economy stalled in recent weeks. a different tone from a we saw the previous report, which came before the banking turmoil. we have the treasury selloff across the board. this followed through from what happened with guilds overnight, given the u.k. inflation came up above expectations. investors are thinking the boe will continue to tighten. the dollar was higher. we had pressure on oil prices which we continue to see in the asian session, around $79 a barrel. that was a reaction from the fed beige book. we had the weekly eia inventory data showing the fuel to

how important is yen strength in the ueda regime at the bank of japan? o: currency is always an important factor when it comes to monetary policy setting. it is special because at the start of last year, the yen was -- and at some point last year, it went up to 150. we had a 30% increase in a matter of months. that was too much, so that is exactly why the boj's monetary policy is more counteracting the anxiety and criticism from the boj last year. now, the extent of it is much more stable, so the stability of the exchange rate will still be an important element surrounding the boj. what happened last year might happen again this year, and the boj will become under pressure to make changes in the market policies. dani: we have got later this month to see how much of that holds up, whether stability is the name of the game. thank you for joining us this morning. kazuo momma, executive economist and director at mizuho research institute. coming up, despite increasing tensions between the world's two biggest economies, a top u.s. treasury official says he doe

our guest yesterday, former chief economist at the bank of japan, not ruling it out, thinking this willer. and of course, mr. ueda spit into parliament on monday, said it is too early -- speaking to the parliament on monday, said it is too early to normalize the ycc framework. normalization is usually talking about raising the rate, making a positive. that is often defined as normalization of policy. ycc and normalizing that framework is different. i want to quickly say also the possibility that fumio kishida party did well in the elections this weekend, maybe they held onto more seats. so there may be more early general elections. would the bank of japan want to make a move before that? that is another reason they could hold steady. 62% surveyed think the first shift from him would be a change in forward guidance, most likely we get a move in june or july. but this week we will get communication and current guidance. maybe not forward. haidi: our global economics and policy editor kathleen hays in tokyo, there the bank of japan meeting. mizuho securities will join us later with their e

and we are talking about the bank of japan and governors and what they will do next. >> the bank of japan'sover said his predecessors' policies are sticking around. and negative interest rates are what the economy needs at the moment. and he is saying it will be a long-term standpoint which will need the approval profl of board members. >> i don't think so it's necessary. of course, there is discussions to with the economy. >> taiwan's foreign minister that the grills meeting with the u.s. house speaker kevin mccarty after his predecessor visited the island. the intestity of the air and naval threat are similar what they you saw after nancy pelosi and detected 59 aircraft. and recent documents leak poses a serious risk. the military is trying to figure out the scope and scale of the heek and there is a criminal investigation. another league enclouds spying on other countries and weaknesses in ukraine's military. four people were killed after an employee opened fire in a bank in louisville, kentucky. two officers were wounded. the shooting, the 15th mass killing in the u.s., coming two weeks

speculators are not getting me to take on the bank of japan. 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 tw

shery: the bank of japan reportedly planning to reveal and inspect its policies of the past decades. rity shares their outlook for monetary policy later in the hour. plus, first republic bank is cutting its workforce and shrinking its balance sheet after the deposits plummeted more than expected. more on that next, this is bloomberg. ♪ >> we are pursuing strategic options to expedite our progress while reinforcing our capital position. i also want to underscore the key aspects of our business that will remain unchanged. these include operating a simple and straightforward business model focused on delivering exceptional client service. working collaboratively to meet the banking and wealth management needs of our clients. maintaining consistently high credit quality and serving and creating opportunity within our communities. >> ceo mike on the banks business strategies actually moving to cut its workforce and says it's pursuing strategic options after biggest outflows than analysts expected. customer deposits plunged 41% last quarter to just over $104 billion, that drop came even as

the speed of the spread of information through social media. >> ueda said he td the officialshe bank of japan will continue monetary easing toward a sustainable and stable inflation target. >>> italy's data protection authorities have ordered the developer of chatgpt to respond to a set of demands to ensure private data is protected. the italian authorities temporarily banned the use of the ai powered chat bot in the country last month. they said collecting vast arrays of data may be -- the officials made the request on wednesday to open ai, the u.s. startup that developed chatgpt. one requirement is that the company allows users to revise or delete their personal data. the firm must introduce stricter age verification measures to protect children. theuthorities are also demanding open ai run a tv and internet campaign that educates the public on the use of personal data to train ai. the officials plan to lift the temporary ban if the company complies with the instructions by the end of this month. >>> the united states plans to tighten greenhouse gas emission rules for automobiles in a step

francine: what is your take on the bank of japan? e yen is sensitive to things that do with the price of oil. kiran: we have seen market selling off today because of the strength in oil and japan is a big importer. we think the bank of japan will review the yield curve control policy but we are not willing to take a strong position on the yen it is uncertain but they will do and how the yen reacts. it has been quite surprising in recent weeks that it been weakening despite moves from of the u.s. curve. francine: when you look at the concerns in the u.k. and the ftse is a little bit of today. a lot of questions on whether money will come into u.k. assets. i know this has to do is sterling and other things in the budget. when you see the moment for the u.k.? kiran: on the currency side of things it is starting to look more interesting now. we had been leased preferred on the pound, a currency was so weakening but now the levels of valuation and given the shift in the fed that we're likely to see, we think the pound will appreciate again

let's get the latest from the corporate stories with bertha coombs. >> good morning, frank the bank of japan's chief announcing policy review in the first board meeting as the bank's governor. one to set the stage of the phaseout of the loose policies from his predecessor in terms of rate decisions, the bank is keeping decisions on rates on hold. >>> tesla rival byd reporting more than a 400% jump in net income for the first quarter despite the ongoing ev price war. the report coming one day after byd overtook volkswagen as china's best selling car brand a title volkswagen has held for the last 15 years. >>> change of heart at first republic the bank is now reportedly working on a private sector solution with hopes of avoiding an fdic takeover far from the outlook three days ago when it said all options were on the table including a government shutdown. shares of first republic down more than 50% this week and set to open -- it looks like it is bouncing on that news, frank we will see if they avoid one of those horrible friday afternoon shutdowns. >> at least in the early trade, shares are up

let's get to the first word news. >> the bank of japan says policies are sticking around for now. e use of yield curve control and negative interest rates i with the economy needs in the moment. he said he is open to a long-term standpoint which will meet the approval of other board members. >> given the current situation, i don't tickets necessary there is still conversations if the economy. >> the chinese military growth is on par with the reaction last year after the predecessor visited this island. the intensity of the threat was similar to what they saw after nancy pelosi's visit. the u.s. treasury top international official says the country is not seeking to decouple from china, the secretary says the world's two biggest economies need to be able to collaborate, the imf warned that tensions drive geopolitical fragmentation and risk damaging the global economy. >> the global economy charged their teams to communicate and work together, and in particular so they said, the world expects us to be able to work together on some of these challenges whether it's climate, debt, or thi

next week the bank of japan will to make the first decision with the new chairman at the head, he hasto declare. that considers the regulator's long-term super-loose monetary policy as quite acceptable the bank of japan's 2% inflation target, which has been consistently exceeded since april last year. analysts expect world oil prices to rise in the last week, quotes have been going down, but the approaching tourist season and the recovery of economic activity in china can make significant adjustments rustam kasumov with details. global auto traffic is recovering, supporting oil quotes in europe increased by 20% in north america by 15%, and in the asia-pacific region, where this figure is always extremely high by 10%. bloomberg cites these data, based on the statistics of navigation services and it's not just about cars according to jp morgan , the number of international flights to and from china reached 44% of the level on april 15 , 2019, the demand for russian airlines in china, in turn, reached 75 % of those values , simply put, china in terms of transport may not very quickly but

rishaad: the meeting next week from the bank of japan. of weeks to go before the fed meeting. there are members of the fed meeting setting out the story. here is bonnie and with the first word news. >> fed president loretta mester a signaling support for another interest rate hike will inflation but she also flagged the need to watch the recent stress in the banking sector that could weigh on credit and the economy. mester said the fed is closer to the end rathern than the beginning of the tightening cycle. >> i anticipate that monetary policy will need to move somewhat forward into restrictive territory this year. the fed funds rate moving above 5% in the real fun rate staying in positive territory for some time. precisely how much higher at fed funds rate will need to go from here and for how long policy will need to remain restricted will depend on economic and financial developments. >> japanese prime minister kishida says he is not planning for now to raise the sales tax rate to fund childcare and defense measures. he earlier vowed to

some have even launched funds to fulfill bank of japan requirements. ne: china is where we are seeing a lot of that? >> china ranked second in the market in asia pacific so they account for roughly $300 billion. japan is the largest. rishaad: what table? can he do in regards to etf's? >> there are a few options. do nothing and maintain the status quo. that is what people expect. they reduce a lot of their holdings. the consensus is ultimately if you retain status quality do not think that is the ideal outcome. the second scenario is he could potentially sell the etf's. advisors have suggested to swap them into a bond. after certain time, they will expire. other advisors suggest to sell them and swap them into single stocks. in japan, the cheapest management fee is 4.5 basis points. his advisors had suggested to hold the single stocks. you are still supporting the japanese economy. rishaad: always a pleasure. thank you. we will keep with the same subject now. our next guest says the bank of japan should change soon. let's bring in andy xie. you have been

they are of course relieved that ueda has taken the helm of the bank of japan. also payrolls in the u.s. came in as expected and the average earnings raising 3%. markets taking souls from those numbers as well. in terms of south korea's market, the kospi is up nine cents of 1%. futures are unchanged at the moment. earlier they had been higher for s&p 500 futures, lower for nasdaq 100 futures. we will see how that continues. the dollar index is unchanged. light trading at the moment and the holiday still in hong kong, australia, new zealand and the philippines. i am vonnie quinn and this is bloomberg. david: this is my kitchen table and also my filing system. over much of the past three decades, i have been an investor. the highest calling of mankind i thought was private equity. [laughter] then i started interviewing. i watched your interviews. i know how to do interviews. i have learned from doing my interviews, how leaders made it to the top. >> i ask how much. he said 250. i did no due diligence. david: and how they stay there. you don't feel inadequate being

his first meeting as the new governor -- leading his first meeting as the new governor of the bank of japann tokyo. the capital city were his family eventually removed. his uncle says he often came back to visit, riding the train all by himself by the age of 10. >> he was a very independent kid. he listened to in was broadcast on a portable radio. he did not understand what he was listening to. his smartness and cleverness really stood out in the family. >> his career as a lifelong academic and central bank under got off to an auspicious start as he earned his phd in economics at m.i.t.. ben bernanke, mario draghi all went on to become heads of central banks along with him. he would use his skill at communicant complicated aspects of unconventional monetary policy clearly to investors in a way that will maintain market stability. the former fed vice chair is a lifelong academic who became a top central banker. he says any policy changes made now at the boj will be gradual. >> you want to dismantle the whole thing right away. you move it out slowly and with a lot of thought about what you mo

the bank of japan governor is testifying in parliament for a third straight day. s not on the verge of moving away from stimulative monetary policy at this week's meeting. kathleen hays is in tokyo and joins us now with more. what is the main concern here for ueda? >> if they move too quickly, the bank of japan moves stimulus a little bit, this could cause inflation to actually fall more than they already expect it to fall. if you didn't get the message on monday, on tuesday he seemed to say it with a more definite tone. he said this could have negative consequences. when we spoke to tatsuo yamasaki, he said he thinks what is going on is that yes, they have to move very carefully. negotiations have gone well so far. but they are not completely over and he doesn't want to stop the momentum. let's listen to the various things he said. >> he mentions that condition -- that the condition is a strong forecast. inflation closer to 2% with high probability ahead. that to me seems that he becomes more cautious about tweaking. it is not a regular negotiation. it is still un

shery: and we are live at the bank of japan headquarters in tokyo ahead of kazuo ueda's first policyecision as governor. take a look at how u.s. futures are trading, this, after we saw the s&p 500 seeing its best gains since january, a jump of 2% in the s&p 500, though we are seeing russia on nasdaq 100 futures. strong tech earnings from the likes of meta, gain of 10%. it offset some negative data that we saw, something that people called the worst of both worlds, breakdown and inflation up, core pce and expectations that the fed may hike rates in may. we saw treasury yields rising. the 2-year yield above 4%. 10-year yield at 3.52. we didn't see much in terms of crude prices, they are holding at around $75 a barrel. a neutered session. traders are on standby with mixed economic signals. but in after-hours trading, it is about amazon. helps one of the reasons we are seeing downside pressure. we saw the quarterly report, profit topped estimates. cost cuts. cloud computing doing much better than expected, and of course, this is at a time when amazon is implementing the largest layoff in

haidi: we are setting up for a should have between market speculators and the bank of japan yet againe new governor ueda gearing up for his first policy meeting this week. let's bring in kathleen hays joining us now from tokyo. no policy change of any type expected from ueda, but you cannot blame the markets from thinking there is a chance especially given elevated inflation numbers. >> do you remember when we first heard this was the next boj governor? a lifetime academic, the first academic like this to become a boj governor. there was rampant speculation at the last meeting that even corona -- kuroda might start moving toward this. because ueda has been expressing support for the policies the last 10 years and the reluctance to move too quickly toward normalization even looking at yield curve control. a news company reported over the weekend that they are going to start a review of the policies of the past 10 years and what to do with them. what seems to underscore the idea this is about taking your time, seeing what happens. 12 months well above the 2% target. clearly the messagin

they basically agreed that they 2013 between the government and the bank of japan would remain intacthe time being. again, reinforcing expectations that the boj will remain focused on doing what it takes to achieve the inflation target of 2%. basically, it looks like status quo for the time being. he was quite clear in making that not a huge surprise given all the invitations so far -- indications so far in his parliamentary hearings. however the market did react slightly. bidding down expectations of a move in the short term. tom: strengthening .3%. thank you, on that press conference from the new boj governor. coming up, 25 years on from the good friday agreement, we look at the impact of that treaty. and to discuss biden's agenda as he has to the region this week. this is bloomberg. ♪ tom: welcome back to the open this tuesday morning. gains of around .5%, stronger upside at the start of the session. 41 minutes in, future still pointing to modest gains in the u.s. and s&p e-mini's. let's focus on the impact of this intelligence leak. the u.s. justice department has opened a crimina

waiting for the yen to come under pressure as we see that passing through, the reaction to the bank of japanand we see a bit more extreme when it comes to dollar-yen shorts, according to an said, they see the yen falling to 140 two the dollar. we do have a number of close markets, on account of the may day holiday. including china as well as hong kong markets. india, singapore, and large parts of southeast asia are closed. maybe that is not such a bad thing, because it is a mixed bag when it comes to the latest economic indicators and rebound indicators out of china. on the one hand when you look at the consumption readings we have seen, we are starting to see the further signs of this disparity when it comes to the economic rebound -- consumption, services. the consumer seems to be coming back. but the industrial side is still persisting. the factory sector is contracting. recovery concerns still lingering in that part of the economy. we have seen the services activity expanding on the back of consumption and construction growth. it really suggests the patching us when it comes to the manuf

waiting until june make sense for the bank of japan. dani: let's do a round trip around the world.or the ecb, you are seeing 10-year treasury and determine yields converge, what gets us there? is that the ecb hiking aggressively, or the fed cutting? antoine: the biggest driver will be the fed cutting. or the market anticipating these cuts. they will price that well in advance and have in fact price that a lot of already. dani: i was so excited, i spilled my water. antoine: on the other hand, the ecb is not in a position to contemplate cutting rates. service inflation keeps rising, the european central bank will need to keep this 50 basis point hike on the table. dani: we will have to wrap it up there. i'm so glad the camera was on you, for those who saw me scream, it is because i just spilled my water. antoine, always a pleasure to have you on, keeping calm as i spill my drink over here. antoine bouvet, senior rates strategist at ing bank. plenty more to come on bloomberg. ♪ dani: let's get your first word news with sam etienne. >> u.s. house passed a debt limit will aimed at avert

. >>> the bank of japan's latest two-day board meeting kicked off on thursday. will be closely watched as it's the first one chaired by governor ueda kazuo since he took the helm earlier this month. japan's new central bank chief this week gave the hint to his diet of his view on the exit strategy of the current monetary easing. he said it's appropriate to continue the policy with targets for short and long-term interest rates based on the state of the economy and prices. he also said the boj will move towards monitoring monetary policy once there's a trend in stable inflation. but he said it's too early to setout concrete ways for monetary easing. and forecast for fiscal 2025 on friday following the meeting. those predictions come after the consumer price index excluding fresh food rose 3% in fiscal 2022 from the previous year. it's the largest jump in more than four decades. investors are watching closely to see if the central bank will announce adjustments to its monetary policy under the new governor. >>> representatives of japan's dining industry have been

earlier new bank of japan governor ueda kazuo said would continue easing. but the nikkei gained later in the week after u.s. consumer and producer price indices showed slowing inflation. now, let's have a look at what's happening in the week ahead. it's crunch time for the key figures from the world's three major economies. on tuesday we'll have china's january through march gdp. on wednesday the u.s. fed reports on the economy, and on friday we'll be getting japan's consumer price index. now tepid economic signals from china are heightening focus on the gdp numbers. we know china's economy slowed last year as the zero-covid policy crushed business economy. the economy then fell short of the annual growth target of about 5.5%. this year beijing has set a goal of around 5%. the government plans to stimulate domestic demand and raise fiscal spending. but one expert we spoke to expressed skepticism. economists said authorities will struggle to achieve their objective. >> translator: the chinese government spent huge sums on under its zero covid program. this h

and on friday the bank of japan will wrap up its two-day policy meeting.t will be the first time the new governor comes out with a policy decision. so this week's featured biz pick is the boj policy meeting. ueda has stated he'll continue current monetary easing measures until there's sustainable inflation of 2% accompanied by wage hikes. so when might ueda change policy? former boj policymaker who used to work with ueda says there are two points that might be telling at the coming meeting. the first is whether ueda will signal a change in its yield curve control policy. known as ycc it's one of the ways the boj is keeping long-term interest rates low. >> translator: ycc had side effects such as des torsions in the bond market. however, if that happens and long-term interest rates rise it's likely to increase borrowing rates for housing and smaller size prices. i think the boj will find that difficult to tolerate in the current economic climate of uncertainty. >> for these reasons he says we won't be seeing any revision of yield curve control at this meeti

bank of england put out. in terms of the u.s. dollar and funding conditions, the bank of england and bank of japan and european bank in consultation with the fed decided to revert the frequency of the daily operations to once per week. going back to normal at the time they introduced the operations of liquidity, because they would be a big bid, it hasn't transpired for a couple of days. that's why they made the announcement reverting back to normal putting an end to the emergency measures >>> let's look at markets. you saw in the opening there with ubs shares taking a hit down 4%. we are seeing a broad based pull back it is not just ubs trading lower. stoxx 600, the benchmark, down .50%. sentiment turning negative in the last 12 hours. in asia, we saw selling pressure overnight. breaking it down by market, the split is interesting in switzerland, we have a strong performer. nestle and novartis seeing their shares this morning pulling the sector in the green. outside switzerland. it is in the red ftse mib is down 1%. we have losses for the ftse 100 and cac 40 and the dax of course, from an earnings perspective, the u.s. is taking c

the governor has taken over at the bank of japan. we are higher. firmly in the green. in south korea, the kospi is fractionally higher. in terms of u.s. futures, we are pointed higher for the s&p 500. we are turned around for the nasdaq 100. it is very early going in the session. let's look at where we are trading with oil. we are higher once again after an up week last week. brent is up about the same. bitcoin up another 7/10 of 1%. it is training in the u.s. monday morning in asia. markets are closed today in australia and new zealand and the philippines and hong kong. they will reopen tomorrow across much of asia. this is bloomberg. ♪ david: this is my kitchen table and also my filing system. over much of the past three decades i've been an investor. the highest calling of mankind i often thought was private equity. and then i started interviewing. i watched your interview. i learned from doing my interviews how leaders make it to the top. >> i asked how much he wanted, he said to 50, i did not negotiate and did no due diligence. david: you don't feel inadequate beca

because a whole weight has taken the home of the bank of japan. the government editor joins us now.st boj goo

. >> the new bank of japan governor may be signaling an adjustment to a key policy talk but bank of americas friday's decision is to a close call. kathleen hayes is in tokyo with the latest. why is bank of america arguing about a shift in the doj might still be on the cards? >> it is interesting. a lot of people say we are not necessarily going to take it off the table. it could happen. it just doesn't seem like the most likely scenario. no change. that is basically what the market is saying. 11% see some sort of yield curve control week. this week, three more. he signaled he is not ready to move on interest rates and certainly not on your curve control. he says he is not ready to normalize the icc framework. bma says look at inflation. it continued to rise on the chlorate. it rose from 3.0-3.1. only about 2%. he also mentioned in one of his answers to the question that there is a danger of the doj falling behind the curve on inflation. he is obviously not putting a big one on that list. this puts less pressure on the bond market, the jgb market to have big yields given the bond market seem

the bank of japan's governor has acknowledged the japanese economy has yet to turn the corner as he endsis 10-year tenure on saturday. handpicked by former prime minister shinzo abe to break the country out of deflation, he oversaw a series of unconventional policies that included a negative interest rate and huge bond buying program, although a global spike in energy and commodity prices pushed inflation higher in japan, the bank has so far failed to achieve its 2% long-term stable price target. companies, however, have started raising wages. corroded gave an optimistic assessment going forward. cash corroded -- kuroda gave an optimistic assessment going forward. >> i do expect that the persistent idea that raises should not rise will change and that our price stability target will be achieved in a sustainable and stable manner, accompanied by wage increases. as for what i want to do after retirement, at 78, i certainly have no desire to look for a full-time job. i'm hoping to maybe find a teaching position at a university somewhere. >> a bit of humor from the outgoing governor of japan

because a whole weight has taken the home of the bank of japan. the government editor joins us now. the first boj governor change in decade has happened. what do we know so far? >> it is quite a momentous day for japanese central banking. since the corroded era has ended. we will hear in his inaugural briefing from 7:15 p.m. here in japan. we are expecting him to be fairly measured in his comments. you're expecting him to continue to say easing is needed and any change would be data-dependent. that contrasts quite a lot with his predecessor who came in kind of runs ablaze when he had his initial briefing in 2013. for now we are expecting he will say easing should continue and it is a wait and see situation. vonnie: the yen is trading a third of a percent weaker. there is a inc. of japan meeting at the end of the month. are we expecting him to go calmly or could he do something at that meeting? >> it is not completely ruled out he will do nothing. there is always a possibility of support -- of surprise. especially since economists currently expect some kind of change to policy by jun

i want to get to the bank of japan because the new governor will be holding his inaugural press conference around 7:50 later monday. a chance -- since trade we are at 132. this is bloomberg. ♪ david: this is, uh, my kitchen table, and it is also my filing system. over much of the past three decades, i've been an investor. the highest calling of mankind, i've often thought, was private equity. [laughter] and then i started interviewing. i watched your interviews, so i know how to do some interviewing. [laughter] i've learned from doing my interviews how leaders make it to the top. jeff: i asked him how much he wanted. he said 250. i said fine. i didn't negotiate with him. i did no due diligence. david: i have something i would like to sell. [laughter] and how they stay there. you don't feel inadequate now because being only the second wealthiest man in the world, is that right? [laughter] a major trailblazer in the financial service system is jane fraser. two years ago she became the ceo of citi and became the first woman to head a major money center bank. today citi and other major banks i

a bit of breaking news on the bank of japan from the team here at bloomberg. j officials are wary of tweaking or strapping the yield curve control at a policy meeting next week. so soon after the banking crisis oversees cloud of the outlook according to people familiar with the matter. still positive on the session by half of 1%. tom: the weaker yen, the first thing i did this morning was triangulate, and it is really right up against resistance. a print would be a huge deal. that is not so much urodynamic as the yen dynamic, and that comes just before that headline. >> let's get you to the price action briefly. futures negative on the s&p. yields higher by four basis points. in the fx market, just a touch of dollar strength. do we care about morgan stanley coming out, or is it really going to be the focus on citizens financial in the next couple of minutes here? we pointed to what we got yesterday, given that western alliance performed much better than expected. if we get a consistent stream of that from the regionals, all of a sudden, is banking crisis over?

you have seen in this month, whether the bank in sweden or the bank of japan today, we have seen somewhate dovish on entry -- commentary from the central banks. it looks like disinflation is progressing slowly and the central banks want to step down the pace of tightening that they have been delivering. i think you will hear something similar from the fed next week. i think the ecb might take a month longer before they get to that point and that is the near term divergence and what we have to be careful about ultimately we don't think the central banks or the macquarie economies -- macro economies are in different races. jonathan: thank you for your time. kamakshya trivedi of goldman sachs. here is the word from socgen, bad is widely expected to deliver its last rate hike i delivering a 50 basis point hike next week i'm a taking us one step closer to the end. but here is the important but, data dependence implies greater vigilance and more volatility in global rates. buckle up is the word coming out of socgen. tom: into my weekend reading, these are not apples and apples. the inflation ch

. -- has taken the helm of the bank of japan. ueda, the first boj governor change in a decade.

bank of america says clients and investors are skeptical on the china rally. swissie is a four-day high versus the yen, this is the haven of choice, as japan looks to continue withwe will know if that is for certain when we get a press conference and decision from the boj on friday. finally, 10-year yields down two basis points. let's talk about banks because this is big today. ubs attracted $28 billion from wealthy clients in the month leading up to its takeover of credit suisse. it comes as the bank reports net new fee generating assets for wealth management for the first quarter that were ahead of estimates. joining us is johann scholtz, equity research analyst at morningstar. given these results, does this look like a bank that is capable to absorb credit suisse? johann: definitely, the contrast between the results ubs reported today, and the results from credit suisse yesterday, could be more stark. we saw big outflows from credit suisse. it is up for debate how many of those actually ended up with ubs. they are well placed to execute on the deal. it is going to be very challenging. they have given us a little timeframe when they will be disclosing what det

of data on tap with jobless claims and q1 gdp and gdp prices and march pending hope sales the bank of japan'sn expected tomorrow with all of that in mind, let's dive into the trading day ahead and where to put your money to work with greg branch. managing partner at veritas financial group. greg, good morning >> good morning, frank >> we ask you to share your word of the day for the trading day ahead. greg, what is your word of the day? >> today's word is ineluctable in fact, i think we revisit october lows within the next two months. >> for everybody out there, you think it is inevitable with that in mind, where are you putting money to work today? >> the trends water observing and where people are putting money to work is in the nasdaq 100 tech trade there are reasons behind that. ultimately, the mega cap tech names with a source of stable and relative earnings growth. we have to question what multiple is adequate for a safe haven multiple we are starting to stretch credibility with the names as well as corporate i.t. is slowing with the consumer. the other is to hang out in the short end o

we get jobless claims and read on real gdp and pending home sales as well as the bank of japan monetary look at the energy sector with earnings from chevron and exxonmobil we hear from the eu with the preliminary flash estimate with the first quarter gdp. let's dig into hadthis with jeff kilburg. >> thank you, frank. >> every day, we ask the brightest minds to describe the trading day ahead. jeff, what is your "wex" word of the day? >> abnormal. you are right. this week is a massive week. 178 s&p companies reporting. if you think of what we have with the diversity of the sectors delivering earnings report, i get excited. it is time to buckle your chin strap. here we are with better than expected earnings. vix closed at 16 on friday that could reveal complacency. when you look at the sour sentiment followed by positive data, inflation is abating that moves the market higher and busts us out of the range. we have been stuck 250 trading days tethered to 4,000 in the s&p if you look at the forward guidance on some of the companies, that may be the catalyst also, let's talk about th the 800-

this is the bank of japan under its new governor, kept its ultra easy monetary policy unchanged.siness headlines for you now, and japanese carmaker has rigged safety tests for some 88,000 cars. those specializes in contact cars, it says it modifies a door parts to minimize the risk of unwanted results. the chairman -- toyota's chairman apologized for what he called an unacceptable violation of consumer trust. u.s. consumer spending was flat for the month of march after rising a tiny 1% in the previous month as core inflation that excludes volatile food and energy costs rose 4.6% year on year in march, still far above the federal reserve's 2% target. the federal reserve is expected to raise interest rates again next week. u.s. oil giant exxon mobil has reported record first-quarter profit as it ramped up production in the first three months of the year. net profit rose to $11.4 billion compared to under $5.5 billion a year ago. oil and gas output rose to the highest level in almost four years. finally, tiffany's flagship store on new york's 5th avenue has reopened after a multibil

the bank of japan will deliver the first rate decision under the governor kazuo ueda. >> china has approveder plants in the first three months of this year than in all of 2021. according to research by greenpeace, provincial governments gave the green light to more than 20 gigawatts of new coal capacity in the first quarter. that's as beijing continues to ratchet up expansion of fossil fuel generation in an effort to guarantee reliable electricity supplies. nbc universal ceo jeff shell is leaving his role after admitting to an “inappropriate relationship” with an employee. comcast said it mutually agreed with shell that he will depart with immediate effect. shell, who is married, has served as ceo of nbc universal since january of 2020 and worked at its parent company comcast for almost two decades. the firm has not yet named an immediate successor. u.s. retailer bed, bath, & beyond will close all of its stores and liquidate inventory over the next two months after its turnaround failed. it filed for chapter 11 bankruptcy over the weekend, but says it's also searching for a buyer for all or

the bank of japan said it will maintain its ultra-loose monetary policy but announced a review in its meeting under the new governor kazuo ueda. the central bank will keep the 0.5% ceiling for 10 year government bond yields and maintain short-term policy rate at minus 0.1%. inflation in tokyo unexpectedly ticked higher this month underlying a strong underlying price trend in the world's third largest economy. consumer prices excluding fresh food rose 3.5% in the japanese capital. marking the highest level in 41 years. the surprise acceleration is attributed to rising prices of processed food. u.s. banks increased emergency going from the fed for the second week in a row underscoring ongoing stress in the financial system. just over $155 billion of loans were outstanding through to back stop lending facilities in the week through april 25. compared with $144 billion in the previous week. resurgent volatility in the banking sector could play into next week's fed decision. new data shows u.s. economic growth slowing and inflation accelerating even before the brunt of any credit crunch st