kathleen: the boj is the odd one out, isn't it?ks are looking to start reducing stimulus, not the boj because of a couple of things. inflation has been almost a year below zero, that is called deflation. there was a pandemic and weak growth but the problem for the boj is looking at gdp, where it has been and where it is expected because this is testing clouds over their decision today where they can't do much of anything. gdp was down sharply last year. japan seemed early to be hit on on its own virus problems but the rest of the world, shutdowns, lockdowns, not as many demands for exports. coming out of that, look at those two orders of average growth. -- quarters of average growth. then the first quarter, you get a negative gdp, been positive, almost 2%. the rate of exports has been slowing, how badly are these lockdowns going to affect consumption? that is one of the big questions that has to be answered. or details on the green lending program. are you going to get questions for the governor about the upcoming election? a new p

and the boj waiting to telegraphic. -- telegraph it. rishaad: we don't know how much they will pay back. these are onshore bonds, what about the offshore bonds? they come later on with payments on those. david: nothing yet on the offshore units. we can't get reactions because the dollar bond market is shut. rishaad: let's have a look at the markets. having a look at what's happening, it is a bit of a relief. we have markets up for the lows. china was playing catch up with the world. this four day long weekend taking place. lean -- we have a nikkei up half of a percent. csi down 9/10 of a percent. we had some of these commodities and they are doing better on the dollar. looking at the time, just down again. deutsche's dollar is down. commodities with just a little bit of a relief with a la minium in iron ore. this is the move coming through from the authorities in china. policy action is encouraging. 90 million -- 90 billion yuan being added to this currency. is it enough? and that is going to be key. david: sentiment-wise? it seems like

haidi: boj, no change expected.rt talking about deflation. >> a lot of people are wondering what they will say especially with there being an upcoming general election. the leadership has put it on the back burner. the key measure for inflation on a monthly basis fell down to -0.2 on the latest reading. you would think that would spur some talk but there is also concerned about gdp. they look at this chart, japan's gdp did bounce back after the pandemic. there were two quarters of growth and now a rebound. there is a dark cloud over the third quarter because of the extended lockdowns and the sense that this will eat away at consumer spending. what is is -- what is expected to happen at the boj meeting is a downgrade of the assessment of the economic outlook. they will consider financing small and medium businesses to help them get through. and a lot of focus on governor kuroda's press conference. i anticipate questions about leadership. haidi: we will continue to watch that race. we stay with the bank of japan. gove

of the boj before corona.ernor said there needs to be a reality check. they are probably never going to get to 2% inflation. they have done as much as they can throw in terms of the stimulus. are they better off establishing a more realistic price target? is that possible? what would that communicate? izumi: it is not a good idea to consider something like that at this juncture. remember, we are in the midst of the covid shock. if the headline inflation reading is negative, even for idiosyncratic reasons, what is the benefit of having that discussion right now and risking sharply tightening financial conditions? we can have that discussion once the economy fully recovers, but we are not at that stage. even the fed is not at that stage. shery: izumi devalier, head of japan economics at bank of america global research. we have plenty more to come at "bloomberg daybreak asia." this is bloomberg. ♪ ♪ shery: quick check of the latest business flash headlines, toyota planning to send 13.7 billion dollars on the supp

and central banks take central stage on tuesday, we will hear from the bank of england and the boj, and of course jay powell himself. a big week. dani: it is. wednesday, we stay with japan, you have japan's ruling coalition, they choose a new ruler who will almost certain he the next prime minister. we also have the latest chinese pmi on thursday the official and unofficial gauges expected come in stronger than last month. a lot to keep your eye on in this very risky market. coming up, investors rattled by the increased volatility in china from evergrande debt we will get the latest next. this is bloomberg. ♪ dani: welcome back to "bloomberg daybreak: europe," i am dani burger in monday -- in london with manus cranny in dubai. an electric car made her -- maker has said it might not be able to meet its financial obligations as a looks for investors. this as holders of bonds say they have yet to be paid for a coupon do last week. the company has another 45 million dollars due on its dollar bond this week. manus: it is a question of the debt crisis, and how it ripples through global market

the mood and manufacturers in japan improved, according to the boj's survey.ium-size enterprises measured six compared to a forecast of negative one. china's central government has ordered top energy state owned companies to secure supplies at all costs. the order was issued during an emergency meeting earlier this week and said blackouts will not be tolerated. india slumped to a surplus on robust services and exports and a narrower trade deficit. the current account was up $6.5 billion. forecasts were for a $2 billion deficit. strong sales of computer and business services helped to boost income. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. >> we have the latest manufacturing pmi numbers out of asia, and we are seeing southeast asia's recovery taking place when it comes to indonesia and the philippines. entering expansionary territory at 59.2. we have the philippines above that level, south korea staying steady for the past 12 months

david mcglocklin covers the boj.ying to keep track of all the different lawsuits that are on at the moment against google. what do we know? david: yes. there are already a number of lawsuits against google for alleging antitrust violations. the trump administration last year sued google over its search business and agreements it had with some of the manufacturers, including apple. there was then to other lawsuits filed by the state attorneys general. this would be a new federal lawsuit that focuses on google's digital advertising business. that's basically the technology that web publishers and advertisers use to buy and sell display advertising on the web. kathleen: in the end, if the government prevails, what does this mean for the company? a quick one for you, please. david: ok. that's hard to know. that will probably not be decided for many years. the worst outcome for google, the possibility is that the court could order the business split off from the country. that's always a risk in these antitrust cases. haid

kathleen: the boj has a gift shop on the ninth floor.r rags you can get which has a ¥10,000 note printed on it. so something to look forward to next time you are in tokyo. but right now i think we want to take a quick look at currencies and see what is going on. the dollar has been weak, definitely getting lower. right now pretty much unchanged. everything is about unchanged. certainly in asia because it is the end of the week. that has been a lot going on all week from australia's latest gdp numbers, many strong reports out of japan. we are waiting for their pmi, etc. at the same time, i think so many investors around the world, they are just pulling in their bets. they want to see with the jobs report does, because if the jobs report were to come in a lot stronger-than-expected and people say maybe the fed is going to taper faster, that could move of rate hikes and we could see the dollar move higher. if the jobs report is weaker, that could lend strength to the sense the dollar is going to weaken further, and that will reverberate thr

boj hoy el presidente joe biden visita new york y new jersey para evaluar los daÑos causados por la tormentae ya fueron declaradas zonas graves de desastre. tambiÉn new jersey, el barrio, ademÁs se reÚne con lÍderes locales y autoridades. aileen: hay que recordar que al menos 47 personas fallecieron en la regiÓn a consecuencia de esta tormenta. nos conectamos rÁpidamente con peggy carranza, esta con una de las familias afectadas. peggy: buenos tardes. nos encontramos con marÍa, ella sido amable hablando con nosotros mientras realiza labores de limpieza, todo esto son objetos que ha sacado del su casa, donde vivÍa su hija, que ahora se ha quedado sin vivienda. queremos saber cuÁl es el mensaje que le envÍes el presidente joe biden abren esta visita. >> yo le dirÍa al seÑor presidente que por favor, acÁ mi hija se quedÓ sin casa prÁcticamente, nosotros pedimos todo lo que tenÍamos, y mi esposo perdiÓ el carro, se inundÓ todo. aparte de eso, cosas emocionales, recuerdos que uno tenÍa, todo se perdiÓ. >> tengo preocupaciÓn porque me acuesto en la noche no puedo dormir con lo que estÁ pasando, po

right decisions from the boj, boe, and federal reserve. a host of global pmi's on thursday.nding out the week with a ton of fit speak lead by chairman powell and vice chair richard clarida. with us for final thoughts are victoria fernandez, george can count those, krishna memani. when you look around, where do you see the first tightening coming from? victoria: you would anticipate from the u.s. would make a lot of sense because we have so much liquidity, we should have started tapering. our discussion is more what the fed is going to do, maybe not what they think -- what we think they should do. i think you'll see it, earlier from overseas. maybe you see from the bank of england. although they have had some poor data come out this week as well. you may have to roll the dice. i think they will play off each other a bit, the way they will do with tapering, but i say we are looking at 12 months before we see it from anybody. jonathan: george? george: i would say bank of england makes the most sense. we are seeing emerging-market concerns about inflation, but it will take time

we do have central bank decisions, including the boj on wednesday.downgrade on the economic assessment. we do have cpi numbers on friday as well. the aussie is not really doing much at the moment. 72, u.s.. this after two weeks of losses against iron ore. take a look at the commodity space as well. it has been about inflationary concerns given this rise in commodity prices. coal prices have really doubled. this is the benchmark price in asia. we could continue city -- continue to see this crunch. when we -- when it comes to nickel, we are seeing a rebound. we are hearing from indonesia that they want to keep more nickel in the country to support the domestic ev betty -- ev battery industry. we continue to see that pressure given china's move to clean up. we will have plenty more to come on daybreak: asia. this is bloomberg. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to t

we are also expecting on the monetary front to continue the super easy policy at the boj.e is a close ally of yamamoto, seen as the architect of our been in -- abenomics. yamamoto recently called for fiscal spending and retaining 2% inflation. there is conflict if kishida wins this vote today and takes over as prime minister on october 4. manus: keeping an eye on the nikkei, we are down, along with the topix. you're going to get a lot of people saying this could be something to do with politics. this is probably more to do with global economics and the tech crunch saw in europe and across in the nasdaq yesterday. stephen engle. the nasdaq having its worst selloff since march of this year. the topix down 2.75%. surging energy prices boosting inflation, slowing recovery from the pandemic induced recession. meanwhile, adding to the dilemma of the world's central banks. david, how are you? dani and i have been chatting about a global stagflation issue. are we in a period of global stagflation? good morning. >> good morning. as a matter of fact, talking about the world economy,

fomc, boj, brazil, even south africans are getting in on the action.story is one we will pay attention to a great deal. alix: i am looking forward to unga in theory, we have some great guests, and the trains are terrible, so how will i get home? that is obviously my big concern. we are headed to radio. coming up, republican texas congressman kevin grady will be joining "balance of power" with david westin and go to dab digital radio for guy and myself. this is bloomberg. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. >> from the world of politics -- >> we did not pay for that tax cut. we borrowed to pay for the tax cut. >> to the world of business

the boj's governor kuroda said it would pick up to 4% next year with the mandate unlikely to change under a new prime minister area china's national development and reform commission is promised to keep residential electricity and gas prices stable. the authority says it will work to avoid abrupt power cuts while letting prices reasonably reflect market changes. earlier sources that beijing was considering a hike is energy costs for factories to ease the supply crunch. china's power crunch might hurt agricultural processing, triggering a renewed surge in world food prices. the autumn harvest is underway just as shortages in energy hit provinces. the crisis is stoking concerned that china will have a tough time handling those crops along with peanuts. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries this is bloomberg. yvonne: still ahead, tracing the energy crunch to an obscure chinese law. how harsher punishments for minors could be weighing on outputs. rishaad: next we are going to be speaking

it's being reported by dow jones that the huawei cfo has now reached a deal with the boj that we returner to china. this would potentially go along way in certain areas to diffuse tensions between beijing and washington if this is the case. this has been a huge thorn in the side of the relationship over the last few months and years. alix: the u.s. and china are trying to get together more when it comes to climate but on the military side, they have a deal with the -- with japan and australia and the deal with the nuclear submarines, that's tense. maybe we can work together on certain things but there is a hide line -- a hard line on the militarization issue. guy: they do all fit together. when it comes to china, is what has been happening with bitcoin, taking a beating today off to the news from the pboc that it's banning all cryptocurrency transactions, cracking down on illegal crypto mining. what does it mean for the future of crypto? michael, what did you make of the news? there seems to be some ambiguity as to what the term transaction means but it fits a pattern of china cracking

ecb, expansion, boj, concentrates from canada, norway, commodity prices. but the fed kept going. had a massive divergence that resulted in a commodity price crass in the turmoil in china. i think going forward from here, why they are being so careful is to try and synchronize more of what happened back in 2014, 2016. that would matter and all of that. as much as possible, coordinating policy reversal. it is hugely important to avoid the failures coming out of the last crisis. guy: many would argue that they have done little more than support asset prices. to your point earlier on about the fact that asset prices ultimately -- do you think that is as true now -- we have seen a lot of qe. you can argue the impact is diminished significantly as a result of the amount of money. you need more on the fiscal policy rather than monetary policy. do think there is the political well, the support asset prices and the way like it was a couple years ago? derek: the big difference in the covid crisis -- central banks were hugely supportive. for more on the fiscal side because there was much mo

alix: then we have the fed and the boj rate decision. 13 official banks this week. six major ones.row. that wraps it up for me and h guy. libby cantrill will be joining balance of power with david westin. we are going to radio. guy: we are going to the cable and will be discussing what is happening in the u.k. turnaround tuesday and the green gilt deal. that is coming up. this is bloomberg. ♪ >> from the world of politics -- >> what is really catastrophic is what we've done to the value of the dollar. >> to the world of business -- >> climates has been on the mind of so many people. >> this is "balance of power" with david westin. ♪ david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." a short time ago president biden made his first appearance as president before the united nations general assembly in new york and address to the question of afghanistan. president biden: we have ended 20 years of conflict in afghanistan. as we close this period of relentless war we are opening a new era of relentless diplomacy.

the boe, the boj, and we don't have a lot of positive catalysts to really fall back on so we might get another couple of weeks of trending down. valuations look toppy. but if you're looking at b barbelling your portfolio, i disagree with being short the qs i think you should be moving into tech and that's where you're going to find additional momentum as we go over the next couple of months or so >> unless of course you think that the overall market is going to continue to have an issue then technology stocks are going to be a place you're going to see money moving out i want to move on to the others. steve, i'll give you a brief chance to respond to this specific move you have in the qs to what shannon just said. >> yeah, the qs were a hedge because i've got q exposure. i didn't want to take gains and sell everything. so i bought the qs purely as a hedge. it's not a long-term play. i came in short them i added a little bit to the short side on them if i'm there for another day, it's going to be a long time >> okay, the other issue that everybody's thinking about is clearly contagion a

we have the boj decision today. you can see the dollar-yen move to 109.marie: looking at these markets, how much do we really care about the fed? are we going to concentrate on china and the noise coming out of there? >> it depends where you are based. in asia, it is all about evergrande, it is all about china. as we go through the european session, we will suddenly be talking only about the fed later on today. annmarie: there has been some shift in hawkish and us. much of it -- hawkish and us -- hawkishness. we are going to be speaking to pret a manger, aiming to double sales by, adding stores across various regions. . ♪ annmarie: looking back to the open, 30 minutes from the equities open. futures pointing higher by 0.7%. china fears ebbing at least for today. talking about china, when anyone is writing about china, speaking about china, i feel like it feels strange when we don't go a couple minutes without someone mentioning siemens for a little bit. mark: absolutely. my chart today is stolen from you. there is a news trend chart on mentions of lehman

saying the bank of japan is largely to stay the course, that whoever leads is likely to agree with the bojary policies that are acquired, not expecting a major shift there. what does this mean for the rally that you're seeing? can it continue? you might see foreign investment coming, as well. the price to earnings estimate for the prospects, that is rather lower than where it was two years ago. with this shift in policy, you could see more foreign buyers coming into this market, which is rallied incredibly high today. worth noting it was a positive session ahead of the jobs report. anna: thanks very much. juliette saly, thanks very much. and sophie jackson, thanks for bringing us the political action, as well. coming up, more from the ceo noel quinn, discussing hybrid working models, interesting things to stay about returning to office. we'll have more on that next. this is bloomberg. ♪ >> my own view on the return to the office is it would be a waste if we didn't learn from the last 18 months. if i think about the future, do i want the future be the way it was pre-covid on working environ

the boj governor saying he thinks that situation is likely contained and is not a replication of japan in the late 1980's and early 1990's. we are also getting bruce richards saying he is buying more -- or for the first time, i should say, this week evergrande debt. he did admit that home buyers, suppliers, and onshore bondholders will be paid before offshore investors. we do know that the housing authority in china has stepped up supervision of their bank accounts to ensure that homes are completed first. the priorities are the investors, not necessarily the creditors. haidi: we have learned that government authorities are stepping in to buy evergrande's stake in banks. this is pretty much indirect or even you could say direct government intervention to try to help. >> it is indicating that the government is taking, you know, some sort of intervention. not outright intervention to save this company, but taking steps to basically achieve the goal that it wants to achieve, and that is social stability, making sure that those investors are paid off. yes, foreign bondholders argue might b

dollar, at a time when the boj is holding steady, so does the outlook for the yen go from bad to worsees, i expect the yen to weaken further from here, with the dollar/yen, and it is a case for a stronger dollar and especially against the yen, but then, also, the other fact that is very important is on the risk side. the yen is a risk protection currency, when risk goes up. but markets stay strong, that side of the yen is less valuable to investors. shery: great to have you on, rajeev. let's get to soon keenan with the first word headlines. su: a ballistic missile. cuter news says the initial conclusion from the japanese defense ministry follows earlier findings from south korean officials. this comes after a test earlier this month of short range ballistic missiles launched. to the u.s. now, majority leader chuck schumer says the senate will take further action this week to keep the u.s. government open after senate republicans blocked legislation to suspend the debt ceiling and extend government funding beyond september 30. one likely scenario is that lawmakers struck out the debt ce

the second, the pboc has been very stable, and the boj has actually been stable over the last six months jumping up during the pandemic, and that is the yellow line at the bottom. the ecb is its own trajectory. this can continue overnight. anna: our guest in the first hour did say she things the ecb can stay dovish for some time, so we will see what we get from the ecb and from the conversation around taper timelines a little bit later on this week. and we should deftly remind you that we are going to be speaking to the former president of the ecb, joining us just after 8:00 a.m. yucatan -- u.k. time. jp morgan anticipates a wave of m&a related financing in the coming months. the market could be set for its busiest autumn on record. that will be one of the talking points at the jp morgan high-yield thompson -- high-yield -- and we are joined by ben thompson. the talk is not going to be driven all by m&a, though that is a big theme. what is the size and scope of the issue as you expect to see? ben: good morning. thanks for the question. glad to be here. we have a robust calendar ahead of

. >> we are not seeing any sort of taper talk in japan with the boj continuing to pump equity marketsere are you seeing the rally going? how much of that stimulus potential given the new leadership has already been priced in? >> we see a bit more juice in japanese markets. we see strong value indicating this will not be run in party elections. that is what we think will happen. the second leg would be slightly more. this will be driven by a couple of sectors. there would likely pick a candidate that would be popular. they will pick a popular candidate. the second, as you mentioned, it would clearly a package rolled out close to the election campaign. this will help in terms of their campaign and votes. there is a valuation benefit in this rotation into japan and lastly, in our view, we do expect global units to increase. japan has high exposure to value and financial increases. we do expect japan to creep up. >> in your notes, you said you short south korea. why? >> it is an interesting one. here is how it is seen in our view. the price of korea in terms of equity markets has run up w