the bank of japan has raised its policy rate to 0.5%. at's the highest level in 17 years, in an effort to combat inflation, it follows a report showing consumer prices rising at a faster pace of 3% above the central banks inflation target. let's head to the world economy forum in davos where joumanna bercetche is standing by with a as to can certainly comment on the inflation story in japan and the broader appetite for retail goods and drinks globally. joumanna: yes, that's right, joining me now is suntory ceo and president takeshi niinami. given how cold it is, i could do with a bit of whiskey. my bosses don't want to see that. let's start with the big news out of japan. another interest rate hike. rates are sitting at 50 basis points now, this is the third rate hike in the past year, rates are at the highest level they have been in 17 years. do you welcome this decision and do you think it was the right thing for the bank of japan? takeshi: this was very much expected. we welcome this increase. the reason behind his consumers are a much

the bank of japan hikes rates like it's 2008. ok at the latest move after this break. >> some people. like doing things. >> the hard way. >> like doing their finances with a spreadsheet instead of using quicken. quicken pulls all using quicken. quicken pulls all your financial info together in reaching your goals requires a well-rounded approach. but i do that. i read classics and contemporary. and when it comes to learning spanish. you memorized random phrases. try babbel with bite sized interactive lessons so you nail the basics. addictive games to build long term memory. award winning podcasts and an ai conversation partner for on demand, no stress speaking practice. start speaking today at babbel.com. dude, i really need a new phone. check out my new samsung galaxy s25 ultra. it's got galaxy ai. imagine this thing running on our superfast xfinity mobile network. and i also heard that it can do multiple things with a single command. —with google gemini. let me try it. add recipes with overripe bananas to my “dessert ideas” note

so we're talking about the bank of japan hiking rates. as the president. he talks about the need for central banks all around the world to actually lower rates. jp just kind of hit on what the potential impact could be with the trump administration. i want to ask you, the president continues to talk about basically american dominance. do you see that being a similar theme when we come to investing and looking at the us markets, are the us markets the place to be, whether it's the bond market, the stock market? et cetera. well. >> it is the. >> place to be. and the reason for that, even before president trump got elected with his platform, is that we were still in a less regulatory environment than most anywhere else in the world. that's been positive. fairly low tax rates, a business friendly environment. and that's only stepping up as we go forward as we see what happens that's actually implemented here. so most of the other countries in the world are still struggling just to get 0% or 0.1% growth in their gdp. and if you look at some of the policies they'

the bank of japan deputy governor, equitation that he could sound a hawker shown. $76 a barrel on crue. fed chair jerome powell saying the central bank will wait for further evidence of cooling inflation before adjusting interest rates again. the fed voted unanimously to keep the benchmark rate on hold. powell says they want to see what policies the trump administration will enact before assessing their impact on the economy. >> with our policy stands significantly less restrictive than it had been and he economy remaining strong, we do not need to hurry to adjust our policy stance. tom: let's bring in mliv strategist mark cranfield. this is a fed that is not in skipping mode, it is on hold mode, and it seems like the policy uncertainty around trump is a factor. >> as you mentioned earlier, they have may be that into account. when traders take a second look at what happened yesterday, the fed themselves are happy that caused little disruption to the market volatility on a day when it was low and u.s. markets are not looking too different from where they were last night. when you look a

so you really should i an economist, professor of economics of k or university in the form of bank of japan policy. both men of good time e with a society. so why is the bank of japan raising interests right now? what's it going to do to the economy? so uh, because uh, you know, uh, we have an integration around 3.6 percent, but mainly to why budget by east amazing interest rate is due to dealing with the us about cheap japanese in. so japanese in study to depreciate about 30 percent. stewart the to $722.00 and this is about cheap japanese in it's creating a lot of headaches to us as to hire for the prices like no integration is about 3 percent. 85 percent of english will come from a food and image. so what is so raises, what is raising interest rates actually going to do to japan's economy and give them good? yes. so you study to the police said because of the. ringback going uh, interest yeah, between 90 states in japan. so like now you know, even bank with your phone rates, interest rate. it's still only to the point 5 percent. so compared to you is the funds rate of 4.25 and 4.5 percent

the bloomberg scoop on the bank of japan says that this good chance of a january hike would come if the markets are called heading into the bank of japan decision. the bank of japan's decision is next friday, five days after donald trump takes office. as long as we have call markets during the week next week, the bank of japan hike does seem likely. tom: thank you very much indeed. looking through the market context on the back of that inflation data. valerie tytel, thank you. turning to earnings news. tsmc's profit in the december quarter topped estimates with a 57% rise. the earnings call has just kicked off. annabelle droulers is tracking all of this for us. another strong picture in terms of the numbers coming through for tsmc. it seems a lot of that is driven by the ai demand. what stands out to you in terms of the numbers that we've had from this company? >> what's really standing out as we've got the earnings call that just kicked off and we are hearing about the expectations for the first quarter and they are strong which is great news. for anyone that's invested into this ai th

the bank of japan raised rates last year prompted a market sell—off so we are watching the market reactioni has more. this chart shows the history of the cost of borrowing injapan and for the last 25 years it has been pretty flat. it was in 1999 when the bank ofjapan became the first central bank in the world to cut interest rates to zero. it was a bold move at the time. the country was experiencing falling prices, also known as deflation and lower rates were meant to encourage spending and investment, at least in theory. but consumers were not buying it. that is because the value of their properties and other assets were falling so people did not feel confident to spend money and it slowed an entire country's economic growth. then, in 2016 the bank ofjapan went further, taking the extraordinary step of cutting rates to below zero. negative interest rates meant that the bank was paying borrowers to borrow money and they stayed there for over eight years, hoping that prices would start to rise. inflation finally arrived several years ago but it was mainly due to higher food and fuel prices

although the bank of japan says we won't do it again. of course, they have to do it again.nancialization of the world where money's just designed to make more money or whatever. i do want to zero in on these central banks whether it's the boj or the federal reserve. i mean, i look at our fed, brian, and i just don't know. can they get it right? it seems like everything they do hurts 7% of the population -- 675% of the population and enriches the top 25% -- 75%. >> charles, this is one of my pet peeves. i've been talking about it for years. going back, ben bernanke in 2008 completely changed the way the federal reserve manages monetary policy. this'll make people's eyes glaze over a little bit, but bear with me for a second. we went from a scarce reserve model where banks had bare -- just enough reserves to be in compliance, and they traded those reserves. every single bank in the united states had a federal funds trading desk. and they bought and sold reserves from each other to make sure they were all in compliance. then ben bernanke comes in and he puts in quantitative ea

i think the years of deflation now well and truly behind us in japan. inflation has been above the bankgative inflation are really long gone. inflation is high enough for the bank ofjapan to be thinking about raising rates beyond where we are today, back to levels that would be the highest in about 30 years. so this is very much a different economy to what we've been used to over the past couple of decades. the scottish capital edinburgh, long a favourite for tourists in this part of the world, will decide later whether to impose a tourist tax. councillors recently concluded that a 5% levy on tourist accommodation was the best rate and today they're voting on whether to proceed with it. the local authority hopes to raise around £50 million, saying the move would go towards improving the city, but businesses fear it could damage local trade. earlier i spoke to leon thompson, who's the executive director at uk hospitality scotland and he thinks the new tax will make edinburgh less appealing to tourists. uk hospitality scotland has long argued against the introduction of a tourist tax in t

i think the years of deflation now well and truly behind us in japan. inflation has been above the bank of negative inflation are really long gone. as your reporter said just now, well, inflation is high enough for the bank ofjapan to be thinking about raising rates beyond where we are today, back to levels that would be the highest in about 30 years. so this is very much a different economy to what we've been used to over the past couple of decades. for sure. very different, because it's not long since we described japan as the world's number—two economy. since then, it's been eclipsed by china and germany — it's in fourth place now. is there any wayjapan can claw its way back up that economic league table, do you think? well, i think there are lots of positive developments in the japanese economy right now. not only are prices rising, but wages are rising. so consumers should be getting a lot more money in their pockets, and that rising income should feed through into rising output, as well. the japanese economy is also now very capital intensive. the share of gdp accounted for by bus

of the consumers. so, to expand the consumption in japan, definitely the current pressure from the currency of japan and japanese yen should be altered asap. i expect the bankjapan will pick up the rates at least 0.25%. >> very interesting to watch. takeshi son, thank you for joining me in davos. that is takeshi niinami of suntory group. >>> up next, we will speak to the dhl group ceo tobias meyer. that is a first on cnbc conversation. stay with us. for nearly 200 years, big beverage companies have been selling us billions of single-use sugary drinks. using the same old one size fits all playbook. think about it, we've seen technological advancements in every other aspect of our lives. but the beverage industry has been stuck in the past. until now. meet cirkul, the beverage platform of the future. transforming water into your favorite beverage. cirkul - your water, your way. for all those making it big out there... ...shouldn't your mobile service be able to keep up with you? get wifi speeds up to a gig at home and on the go. introducing powerboost, only from xfinity mobile. now that's big. >>> welcome back. u.s. president donald trump declared a national

it was in 1999 when the bank of japan became the first central bank in the world to cut interest ratesthe country was experiencing falling prices — also known as deflation — and lower rates were meant to encourage spending and investment, at least in theory. but consumers weren't buying it. that's because the value of their properties and other assets were falling, so people didn't feel confident to spend money, and it slowed an entire country's economic growth. then, in 2016, the bank ofjapan went further — taking the extraordinary step of cutting rates to below zero. negative interest rates meant that the boj was, in some ways, paying borrowers to, well, borrow money — and they stayed there for over eight years hoping that prices would start to rise. inflation finally arrived several years ago, but it was mainly due to higher food and fuel prices caused by the war in ukraine. in march last year, the central bank moved rates to a range of 0%—0.i% — a tiny rise, but a seismic shift in policy. the boj finally exited its negative interest rate policy. a few months later, the bank ofjapan

then in 2016, the bank ofjapan went further, taking the extraordinary step of cutting rates to below zero. negative interest rates meant that the bank of japan bank ofjapan was in some ways paying borrowers to borrow money. and they stayed there for over eight years, hoping that prices will start to rise. inflation finally arrived several years ago, but it was mainly due to higher food and fuel prices caused by the war in ukraine. in march last year, the central bank moved rates to a range of 0—0.1%, a tiny rise buta a range of 0—0.1%, a tiny rise but a seismic shift in policy. the bank ofjapan finally exited its negative interest rate policy. a few months later, the boj raised interest rates again, this time to around 1.25%, showing their confidence in the country's economic recovery and that inflation is finally back. but that triggered a market sell—off because investors worried that they may raise rates to fast, and also because of a complex impact on the value of the japanese currency. officials have been cautious ever since, officials have been cautious eversince, but officials have been cautious ever since, but they put rates have not

in the bank of japan hiked rates for the second time this cycle. the policy rate in japan is at the highest since 2008. before the currency conversation let's highlight a couple individual equity movers. we go to natalia. natalia: we are watching shares of meta up slightly below 2%. mark zuckerberg announced plans to spend $65 billion on ai in 2025. analysts expect the company will spend slightly above $51 billion. the company reports earnings on january 29 so all eyes on that as well. the verizon stock is rising as the company posted better than expected results. we see growth across mobile phone subscribers as well as broadband customers. analysts are optimistic about free cash flow growth and finally novo nordisk, at that company is soaring today. up by 8%. it was up as much as 14 earlier. novo nordisk posted a really strong early trial results for one of its experimental drugs that showed patients can lose more weight versus previous drugs. keep in mind, stocks -- the stock is down by 14% over the past 12 months. it's a long way to recover. sca

it was in 1999 when the bank of japan became the first central bank in the world to cut interest ratesthe time. the country was experiencing falling prices — also known as deflation — and lower rates were meant to encourage spending and investment, at least in theory. but consumers weren't buying it. that's because the value of their properties and other assets were falling, so people didn't feel confident to spend money, and it slowed an entire country's economic growth. then, in 2016, the bank ofjapan went further — taking the extraordinary step of cutting rates to below zero. negative interest rates meant that the b0] was, in some ways, paying borrowers to, well, borrow money — and they stayed there for over eight years hoping that prices would start to rise. inflation finally arrived several years ago, but it was mainly due to higher food and fuel prices caused by the war in ukraine. in march last year, the central bank moved rates to a range of 0%—0.1% — a tiny rise, but a seismic shift in policy. the boj finally exited its negative interest rate policy. a few months later, the ba

we have been hearing from governor ueda suggesting that the decision we from the bank of japan is in play. he hinted at and talked of higher wages, that suggests maybe there is an option for the boj to go with another hike. markets expecting a 68% chance. that is the odds of a boj hike at that meeting next week. so the yen is strengthening. the taiwanese semiconductor manufacturer tsmc in focus on the back of those rules from the biden administration, currently down 2.3%. economists in bloomberg's survey are expecting u.s. consumer prices to show a fifth month of firm increases. today's print likely to reinforce the case for an extended pause in fed rate cuts. that is the affectation pay let's bring in valerie tytel on the key components worth scrutinizing on the report. >> it will be on that core month on month cpi print. expected to hit 0.3 for a fifth month in a rope. if we look at what is priced into the options market, market attention has squarely returned back to inflation. this is the biggest cpi print in nearly two years. the implied swaying in the s&p 500 for today's print i

of japan has the luxury of waiting to make the decision. the bank thinking about upgrading their inflation forecast on salaries and the price of rice and other inputs. it goes to show how they waited to not necessarily hike rates in december and how now might be the time to go after the policies. jonathan: it's amazing how much of the world is waiting on a number that drops 8:30. the spillover you will seek to foreign markets is remarkable. lisa: is remarkable how much the markets are susceptible to one that is not their own and they are feeling that and responding to that. at 8:30, expect a real potential move globally. jonathan: payrolls just around the corner. 165,000 is the estimate. let's cross over to dani burger. dani: chinese hackers breached sify's, the u.s. government office that reviews foreign investments. cnn reporting the breach happened in december, part of a larger incursion into the treasury department's unclassified system. officials are trying to determine the national security risk from that hack. apollo management is considering

. >>> the japan 40-year yield rising to the highest level since 2007 on expectations the bank of japan securities violations over the two dealers violated more than ten securities laws provisions. >>> shares of kb homes surging on the fourth quarter. shares of kb up almost 9%. >>> shares of honey well. the company is set to move forward with the plan to break up into two companies. the move follows pressure from elliott management to do so. shares of honeywell up in the pre-market. >>> back to the markets. the stocks kicking off the new trading week. take a look at futures in the green across the board. dow opening up 200 points higher. let's bring in amy wu silverman. amy, good to see you. >> good morning. happy new year, frank. >> we are seeing a bounce in the pre-market right now when it comes to futures. we are on a slide with wall street overall if you look at the longer trend. with that in mind, what is your word of the day? >> my word of the day is fairly fitting. it's angst. frankly, that is the sentiment we've had since the year kicked off and perhaps a little bit prior to chr

bank of canada cut rates. they dropped guidance. in a statement in regard to tariffs, the bank of japan -- canada said that inflation is going to stay close to target. however if tariffs were imposed, the resilience of the economy would be tested. and enda was saying there is a february 1 deadline in place. if the white house moves forward with these tariffs that they are talking about up to 25 percent on canadian and mexican imports, how does the fed bold that in because that will take effect and we will see it before the next policy meeting. julia: that is one of a variety of policies that can affect the macro economy, cutting federal spending could affect the macro economy. definitely a slowdown in immigration which has been quite abundant in terms of producing labor supply and a dynamic man -- dynamic labor market. the fed has to look at all of these things and keep an eye on all of them. the bank of canada is a good example. they highlighted the dual mandate threat. it can raise prices. i mean ,lutnick is saying it is not inflationary. in the near term it raises the price level and it looks like inflation. for consumers the dis

the japanese yen is worth watching since it irmed up and how the bank of japan will respond. that will depend on the japanese and how it will impact japanese markets and stocks when they reopen next week. frank, back to you. >> jp, great to see you as well. >>> a lot more to come here on "worldwide exchange," and the name victoria greene wants to see added in 2025. >>> first, citi is out with the top stock picks in the year head and honing in on the consumer staples trade. >>> the port strike countdown and what is being said ahead on a very busy hour on "worldwide exchange." stay with us. it gets a little o. ugh. stop waiting. start investing. e*trade ® from morgan stanley. what if your mobile network wasn't e*trade ® just built to work out here... ...but was designed differently to also give you blazing fast wifi where you are most of the time? reliable 5g, plus wifi speeds up to a gig where you need it most. xfinity mobile. xfinity internet customers, ask how to get a free 5g phone and a second unlimited line free for a year. >>> welcome back to "worldwide exchange." stocks

bank of japan officials think it is likely they will raise rates at their next meeting. sources telling bloomberg think is likely the central bank will hike rates 25 basis points unless donald trump ruffles markets or changes expectations at the start of his presidency. jonathan: thank you. dollar-yen 155.78. coming up, scott bessent heading to capitol hill. >> i think everyone is on board with a forward guided or a phased-in tariff. if you bring down your tariffs we will bring down hours. everything i see assumes there is a jump on day one which will not happen. jonathan: will it happen? that conversation is up next. live from new york city, the morning. -- good morning. ♪ where ya headed? susan: where am i headed? am i just gonna take what the markets gives me? no. i can do some research. ya know, that's backed by j.p. morgan's leading strategists like us. when you want to invest with more confidence... the answer is j.p. morgan wealth management you know what's brilliant? when you want to invest with more boring.nce... think about it. boring makes vacations happe

we also heard from the governor of the bank of japan saying they are ready to increase rates dependingourse, on the incoming data. that's one to keep monitor across 2025. over in china, we had the hang seng down .40%. shanghai composite march ginall lower. this despite concerns regarding the upcoming administration in the united states and what it could mean for chinese equities. moreover, the latest data out of chinese. the services activity grew at the fastest pace in seven months in the month of december. overseas orders fell. the services pmi fell 52.2 last month. the fastest since may. the composite reading fell to 51.4. now our very own sam vadas filed this report. >> reporter: the report showing activity the most in seven months and that's encouraging news, but if you look under the hood, it wasn't rosy, overseas orders fell for the first time since 2023. companies shed workers for the first time in months citing cost concerns. also hampering is business confidence. that is the lowest since the start of covid as businesses stare down the barrel of another round of potential trum

and also one last thing with rates, that's not really being discussed around markets is the bank of japan is probably going to raise rates this month, and they continue to reduce the pace of their qe. through the first quarter of 2026, they will have cut qe in half. that's a major sfig ot that is impacting global interest rates just as it did last summer when they eliminated curve control and the yield within days started to descend to 5%. >> when you look at the revisions we've seen last year and the jobs numbers, we saw the biggest revision since '09. do you think that could be a little wonky in the differential that you talked about? and secondly, when you take out mag seven, your concern with valuation, when you take out mag seven and you look at forward versus forward without mag seven, it's a couple of percentage points different. when you look at current, it's about ten handles different. >> agreed. you can drive a truck between the multiples of the growth stocks and the value stocks. i think this is the ideal situation where value finally catches up to the growth trade and that th

the bank of japan skipped the summer meets, but they're poised to hike again. and the demand for -- from japanese treasuries, or foreign accounts in general for treasuries, has been low, because domestic yields are quite attractive. custody holdings of treasuries from foreign central banks has been going down. and that's led to less demand for treasuries. so, we've seen this buildup in term premium coming from less demand, as well. we're watching that, as well. you have more supply and less demand. so, that's a recipe for a push towards 5%. >> as you look at rates going up and down here, going up and down across the entire world, that's got to have a pretty significant impact on the dollar. what kind of impact, then, is that going to have on our economy and therefore the markets? >> yeah, the dollar has been strengthening quite dramatically. if you chart the ten-year yield and the dollar, you see that strong correlation as the dollar has strengthened, after the elections, you're seeing that that's been something that's been correlated with the rise in ten-year

the morning the bank of. japan raised rates from 0.25 to half. >> of 1%.g around 1.22%. >> it didn't even. >> take out its. >> january 15th high yield close. >> at 1.25%. squawk on the street will return after a short break. >> the bond report is brought to >> the bond report is brought to you by pimco, a louis! okay everybody, that's lunch! (♪♪) mud mask? (♪♪) (♪♪) i don't play for money. before my mom passed, she told me to play big— play for something bigger than myself. now, my ambition is to play so i can help and inspire others. that's why i joined sofi. they help people save, spend, earn, borrow, and invest toward financial independence. so they can realize their ambitions. no matter what they're playing for. sofi. get your money right. >> mushroom. >> a superfood mood booster that >> a superfood mood booster that reduces stress. that's much ♪ in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it t

. >> there's a bank of japan meeting. >> okay. >> they're talking about -- there's a lot of interesting things going on, which you know, i'm kidding around, but you know, told recently, the yen had almost weakened to levels we saw over the summer, it stopped, but their interest rates haven be going higher, so, there's a lot going on in japan now that i don't think the market is paying enough attention to. >> you talk about the systemic risks, the bigger risks are that not only japan is a problem, but also that the fed is going to have to be more hawkish than they want to be, so -- i think the rest of the world is worth focusing on, even though, again, the start of this conversation was about a.i., and what's really been driving our markets the last couple of days. >> just one last thing on international and europe. i think the chance of a ukraine/russia something positive -- >> cease-fire. >> yes. has gone up a fair amount, and i think that's somewhat reflective. if they reach some sort of agreement, there will be more to come for, certainly germany. but all over europe. >> all that sai

a few days ago, the bank of japan raised their equivalent of the fed funds rate to 0.5%. that's the highest it's been in 17 years. even if the fed cuts again at the next meeting, though, we'll still be above 4%. here's what people do. rich people, typically big hedge funds. people borrow in yen, then buy dollars and invest in the tenure. but as garner sees it, something's going wrong here. like we saw when the yen carry trade imploded in august, things could get very ugly. in the end. garner is adamant that these obsessively close correlations are always temporary, especially in the commodity space where she thinks a breakdown is inevitable. bottom line the charts, as interpreted by carley garner, aren't obscenely high when we're talking oil or corn, but oil could be vulnerable. by the way, she does think cattle prices are an accident waiting to happen now. i hope she's right. why? because this is all hedging and creating inflation risk traders have been directly, directly causing inflation. that's what's really happening. and sooner or later that has to stop. and it coul

dani: the bank of japan, not that different of a reason because they hiked this morning, because u.s.lowed them to do so. the reporting was you had u.s. data in their hand and that was calm enough. it was not a big surprise so they could hike. as long as we did not get anything that was volatile coming from the trump administration. they wanted to wait until the inauguration to make this decision. it happened. there is still fragility that might stop the boj in its tracks for the same reason we could see fragility in the overall market depending on what happens from u.s. policy. annmarie: policy moving markets this morning. that is where we will start. president trump telling fox news he would prefer to not impose tariffs on china, still calling them a tremendous power over the country. this after he threatened on his second day in office 10% tariffs on china as soon as february 1. peter pointed out to this, "it seems this has become a negotiating ploy. he talks about it to rally support is is listening to those who caution about being too aggressive." do you think the market is seein

the dollar weakened more significantly against that bank of japan decision. s on these potential moves. jonathan: joining us now is nela richardson, chief economist and esg officer of adp. nela: great to see you, even if we are in coats. jonathan: as we have said, it is called her back home. everyone is very happy with the u.s. economy. how do you read things? jobless claims up just a bit, but what is your read on things? nela: things are stable right now but i don't think that will stay. there is a lot of stasis in the labor market. you can see it with these very low jobless claims numbers that came out. we are lower than we were going into the pandemic. but i do think you see the threads starting to fray when ou look at initial jobless claims. it is taking longer to get a job. we are seeing wage growth come down a little more. there is a little less heat in the labor market. i hope it's not a cooldown but too early to tell. jonathan: it feels like these things have been going on for quite a while, if you had fix along the way. since then, things have changed

well, this morning the bank of japan said no thanks. they raised interest rates by a quarter point overnight, bringing its policy rate to the highest level they've seen since 2008. the bank is seeking to normalize the country's monetary policy amid signs of sustained inflation and rising wages. following that decision, the yen strengthened slightly against the dollar. but we all know the dollar has been so strong, it's risen so rapidly in the last quarter, and that's been an issue for some of these big multinational companies as they've been reporting earnings. they say it's a big headwind. they're trying to find ways operating to work their way around it. >> yeah i do think a lot of the earnings guidance and conference calls is probably going to have a lot of fx talk. how is this going to change our guidance? historically, the market doesn't usually get too alarmed about these things, but it's definitely. >> well, we had the ceo of procter and gamble, john mueller, was on because jamie dimon had been on and asked him about the strong d

we have this in the bank of england and the bank of japan.s a whole counsel when it comes to making decisions. at the end of the day, it's which way the majority vote will go. it would suggest to me that the majority is a cautious outlook. jonathan: jane, appreciate your time. jane foley. we are poised with another week of dollar weakness and only the second week of dollar weakness we have had in four months. i think we went through q4 with one week of dollar weakness. this will be the second one. dani: a lot of that is due to u.s. data over the past week. how does this set us up for monday? if we get real executive actions, does that mean we will get a pop in the dollar and pop in the yields? jonathan: we will see. it all comes down to next week in many ways for many of you, i know. up next, we will catch up with matt, michael, norman and mark kelley, next. ♪ >> we are at a delicate point for the fed, but i do nothing they will get too preemptive in this environment. >> without inflation would probably hang a little higher than expected. we

and friday, the bank of japan rate decision, another fantastic lineup of guests tomorrow morning.tanley and many more from davos, switzerland, this is bloomberg. ♪ matt: energy demand set to soar. katie: bloomberg open interest starts right now. sonali: netflix closed out 2024 with a bang. delivering record quarter thanks to live sports. matt: all in on artificial intelligence. president trump announces a $100 billion a idea was softbank, openai and oracle. katie: trump said he would be open to billionaires buying

of 2008. thailand set for a pink tourism boom after legalising same—sex marriage. hello and welcome to business today. i'm steve lai. japan's central bankas raised the cost of borrowing to the highest level since the global financial crisis of 2008. unlike other major economies, the cost of borrowing there has remained low as the country only started to experience inflation in recent years. injuly last year when the bank ofjapan raised rates, it prompted a market sell—off. a short while ago — the benchmark nikkei 225 was down by a quarter of a percent. mariko oi reports. this chart shows the history of the cost of borrowing injapan. and for the past 25 years has been pretty flat. it was in 1999 when the bank ofjapan became the first central bank in the world to cut interest rates to zero. it was a bold move at the time. the country was experiencing falling prices, also known as deflation, and lower rates were meant to encourage spending and investment — at least in theory. but consumers won't buying it. that's because the value of their properties and other assets were falling, so people didn't feel confident to spend money and it slowe

time with the president over the weekend at the inauguration and masa was there, the head of soft bank from japan and it was funny to watch president trump in action. it started off that masa was going to invest $100 billion but president trump kept prodding him and then it was $200 billion. by the time he walked out of the dinner we were at, we joked it would be $500 billion and here we go as he brought in the other two companies and it is $500 billion. half a trillion dollars into america. that's a deal maker for you. three days into trump's second term the founder and editor in chief of politico writes this piece. time to admit it, trump is a great president, he is still trying to be a good one. writes this in part, trump is someone with an ability to perceive opportunities that most politicians do not and forge powerful, sustained connections with large swaths of people in ways that no contemporary can match. in other words, he is a force of history. this is important to note because politico has been so critical of president trump over the years, cheryl. >> absolutely, they have been. but yo

on a can find more information on our website out there that com, the plenty of snow has folded in japan, but with the bank to see it slo, dyer, now there's to a level in the ground and of course, no, be some generate to, but because the wind direction doesn't really bring it to you, it's in a cold wind admittedly, but not as cold as it was. temperatures now will start to revive the code to have back of it. so hobbins max is 9 minus 7, i spoke to minus double figures. so it was up to about plus 5, same as by using and took is about 12 and even more where if and type a and hong kong, so the cold wind is going away. i'll just nurse the circulation, which i'll keep an eye on. i don't think it'll come to much petite, just marked now for the rest. and what reading there is going to be, i think, reestablished from general our staff with through and for dash and in straight line . there's also this line of sherry's sherry, right? possibly sundry, which could go the tendency to disrupt this step and start to k, which is persistent fog and smoking in the major cities of no of india. because you know, you did the su

of funding. the u.s. there at the top. there are other groups like the world bank, the gates foundation, countries like germany, u.k. and japan is responsible for 1/6 of the organization's budget. is president trump's characterization that the u.s. is shouldering an unfair burden here wrong? lawrence: yes, actually. i think it is wrong. but it is not totally wrong. let me explain. the w.h.o. has a budget of roughly one quarter of the u.s. edc. for a global institution, it is chronically underfunded. it does not have the resilience and funding that it needs to put out fires. the united states should not pay less, but other countries should pay more. china should, india, the gulf states, many other middle income countries. i think that trump would do a much greater service to the united states and the world, if he stayed in and renegotiated a deal. yes, let's make w.h.o. more resilient. let's find it better. let's make it more powerful. and let's make it more accountable with financial oversight. but leaving it would greatly damage the united states national interests, and world health at large. it is not really like the border

china could be heading for decades of economic stagnation, like japan suffered after its boom turned to bust in 1990. jinny yan is chief china economist at icbc standard bank programme. your thoughts on that figure that was released earlier — 5%? 5s was released earlier - 5%? 596 is a was released earlier - 596? 596 is a target _ was released earlier — 5%? “3:96 is a target and obviously they're on target gdp performance is what market were expecting. the highlight was that industrial production especially beat estimates in the fourth quarter so i think the fourth quarter so i think the focus is to de—risk the economy, make sure growth hit target. we have to get used to the fact that china is slowing down because of structure issues such as an ageing population. the focus is to look at where is that new growth coming from. if the traditional sectors are continuing to slow down. where do ou continuing to slow down. where do you think _ continuing to slow down. where do you think it _ continuing to slow down. where do you think it would _ continuing to slow down. where do you think it would be - continuing to slow down. where do you think it would be comingj

china could be heading for decades of economic stagnation — like japan suffered after its boom turned to bust in 1990. jinny yan is chief china economist at icbc standard bankhow declining growth rates are being seen in china. 5% is a target, and obviously that on—target gdp performance is what markets were expecting. now the highlight actually was that industrial production especially beat estimates in the fourth quarter. so i think the focus is to, first of all, de—risk the economy, make sure that growth hits target. i think we have to use get used to the fact that china is slowing down because of structural issues such as an ageing population. so the focus is to look at where is that new growth coming from if the traditional sectors are continue to slow down. so where do you think that new growth would be coming from then? actually a lot of exciting sectors. so technology focused of course. and we know that in global supply chains, china is becoming more and more competitive in areas such as new energy vehicles. we know that. but actually increasingly the domestic capacity, so increasing domestic travel, services sector, in the lunar new year holidays, w

bank. and then there's also some of the question would be, is what role, where the east and east asians play? what kind of countries like korea, south korea, japan, china, and that's much more subject to the bait. many of these global powers in the middle east. the core of their interest. why in the gulf countries where the energy energy producing country starting rate, the u a got the and the, the key thing is that what interest do they haven't syria and i think primarily, sir, it's the security issue for many of the external powers to prevent, to make sure there's a stable c area and there's not spill over of security threats into the region and beyond. all that is exactly what i wanted to ask you. what do they want, what is their interest? i think if we go from the top of list 1st country, you mentioned turkey a, it's pretty transparent, right? they want to contain or eliminate in what is in their view, a threat from crush arm groups along their border. and they have said that if syria and the new administration doesn't help them get there, they will launch a military offensive themselves. so let's just leave turkey and the question, i think

japan. the difference is a very high, that's a very high and you know they'll, they'll, they'll put some money behind this. i think the, the well bank and some of the gratian development bank, and maybe even the european reconstruction bank will put some money out. but i can't imagine them finding more than a said the kind of money that's required. the rest is going to have to come from the gulf. and that does get the gulf states and saudi arabia enormous leverage. because the americans will be anxious that that reconstruction project gets under way. so the balance of power i think, is going to move to those who are going to foot this enormous bill. yeah. and get out. and if it needs to be nice to be launched, really, really quickly, i was just about to always say, well, how does that work with the timeline on the sorts of challenges? how does, how do that kind of go about deciding what's, what's to start with us and what to move on to next as well, you know, the renewal of this thing is the, to your program before you came to me. and we love the correspondence. uh, yeah, uh, the fragility of the piece deal, a possibility it has, but the mounti

of this around. certainly earning season may change everything tomorrow big banks start the party off. erica will prepare us for that. bond vigilantes on the move in japan, uk and also in the usa. do they really even exist? animal spirits on main street continues with optimism surging and might take awhile. it's aigrette thing. and i'll speak with one local resident of los angeles doing his part to help his neighbors and city. all that and more on making money. ♪ ♪ charles: april 13, 1957 and all shook up by elvis and it remained atop the billboards and that's what's happening it to the financial market and these days it's the word tariff or tariffs and deadly headline on the guessing game of the trump team rolling out the central cam tiana promise having an impact on the market and yesterday bloomburg reported z the trump team was studying a gradual increase and that headline helped lift our stock market, which stumbled out of the gate and other assets like the arrow that took off. see when that headline came out and when the euro began to really scream higher. now, if you're thinking tariffs were a essential campaign issue that the markets more fretti

japan. how are you thinking about potentially investing right now in the united states? jonathan: on the way out the door. that list of people very long. china's central bankending a stronger daily reference rate in hong kong to help stabilize the currency. investors remaining cautious due to china's economy under the threat of u.s. tariffs. happy new year and welcome to the program. lisa and i were talking about whether china would look to embrace the weakness of the currency to offset the threat of tariffs. are you seeing signs that point to the opposite? >> it is too early to tell. if china has a plan to use the currency it has to wait until tariffs are in play until it does that. there is weakness in large part because the dollar is superstrong. everybody looks at trump's plans and see a stronger dollar there too. the yuan, they will be moving it around based on what they need to do. this is an expectation of what trump policy will be. annmarie: how much are the chinese authorities preparing for what trump will do with the idea of a bazooka versus other measures we are already seeing with cybersecurity issues popping up all the way through the governme

japan he's a hero because he's so different. and he's he's a sort of dynamic, disruptive force. they like it. >> the institutions, not so much. >> i mean, the banksamerica. they kind. >> of go with. >> him. >> because he's made 1 or 2 huge successful calls like he spotted alibaba, he met jack ma and he said he said it was like smelling the horse flesh. i knew. this guy was a winner. and he said, i'm putting 20 million in there. i'm putting 80, 80 million. and he made more than 100 billion. so everybody remembers that. they remember yahoo! so, you know, he's got a lot going for him. we'll come to wework a bit later okay. >> but isn't that the magic his scale. right. so we can look at wework. that was a disastrous fail that he doubled down, tripled down, quadrupled down on saying like, masa is over, but we work. you can just put over here. when you think about the amount of money that he has, the amount of chips he can put on the table. wework is just one single hand. he's got 15 more right alongside it. >> yeah. and look, he persuaded the crown prince of saudi arabia, mbs mohammed bin salman, to hand over $45 billion. he says in 45 minutes, actual