rishaad: this is also boj day. there is talk about them having talks about perhaps a slight normalization in interest rates there. these price pressures perhaps give kuroda a little bit more wiggle room as it were. the yen went down. it has bounced straight back up. looking at it at the moment. the bank of japan, people waiting for what it has to say, what it has to say about its economic assessment may be more important than what it actually does. there you go. haslinda: you are right and the market has been pretty nervous. yields have been writing -- rising in the lead up to this particular meeting. there will be eight-week in the town when it comes to inflation -- a tweak in the tone when it comes to inflation. it is about yields surging. we see it across the board in terms of treasury yields. how high will yields go and what rate will that start impacting? >> it is good to be back. things with the u.s. to interest rates, we have negative real rates and the fed really doesn't have much of a choice given the incr

we are talking about the boj of course. garfield: you said boj in my instinct is to stifle a yawn.hey are usually as exciting as watching paint dry. there has been plenty of excitement coming into this. in the current environment, any central bank meeting is live as far as bond markets are concerned. there has been speculation the boj may actually talk about talking about thinking about when they might raise rates. it is torturous, but if they are doing that, that emphasizes that everybody else is looking, is going to be pushed toward raising rates. one of the big things to watch is if there is the sort of less dovish surprise from the boj, that might be the sort of thing that helps to push the yields into positive territories. the ecb and boj are the two major holdouts when it comes to moving away from record accommodations. if the boj is taking a step along this route, that speaks to the idea that the ecb will be less accommodative. there are strong concerns about inflation in europe. there are reasonable signs about growth even in the face of fairly extreme pandemic numbers. tha

the yen is weakening ahead of the boj decision. haidi: let's get straight to the sydney open as we get started trading. trading across new zealand and australia as well. futures looking positive at this point. .3% higher. a lot of concerns over the slowdown in china and what more policy measures we could get from the pboc. we are seeing the impact of omicron hitting not just the financial centers but the political centers and tech centers and now impacting the winter olympic games as well. david: no more ticket sales to the general public for the upcoming games in a couple of weeks. that is the latest. let's get more on the story. beijing reporting its first and hopefully only omicron case. yvonne man has the details. what are the winter games going to look like if we don't have the public celebrating the games, if you will? yvonne: yeah. i guess this is not a big surprise given china's covid zero policy. there's a lot of questions on who gets to go now that they have shut it off to the public and it is only people who got invitati

>> boj is targeting 10 year yield that -- a range of 0.25%.ernible] they can increase purchases over one year. they are already reducing purchases of the jgb. so i think it is controllable. one thing is boj monetary basis started to decline this year so this might be inconsistent with the other guidance that says it will continue to rise until inflation goes above 2% in a stable manner. haidi: the prime minister's back in parliament today with previous comments about capitalism and reform. world market investors are worried. what do you expect to hear? >> economies are starting to pick up since last october. so it will go above 6%. we are not worried about japan's recovery process. the governor is already providing cash to some people because of covid. so he might say he is doing the best to control the growing number of covid. otherwise this year economies will continue to grow i think and earning will pick up. if we can control the growing number of covid, globally we will see a strong pickup in consumption. haidi: he is also being supportiv

even so, many economists will be paying attention to boj's quarterly outlook. officials are expected to revise their inflation forecasts upward in their three-year outlook to march 2024. but the numbers are expected to fall sort short of the boj's 2% target. >>> turkish officials will also come out with a decision on monetary policy on thursday. turkey's central bank lowered a key interest rate in december, the fourth straight monthly cut, in line with the policy of president erdogan. but the moves triggered a drop in the lire and the prices of imported goods have soared. the annual inflation rate in december sit 36%. the president pledged to keep lowering interest rates until elections scheduled for 2023. erdogan wants to keep borrowing rates low to stimulate the economy. he also believes that raising rates will increase inflation rather than control it. the turkish central bank's next moves will be attracting global attention. >>> the latest consumer prices in the eurozone and japan will be released later in the week. the european union statistical office wil

the boj remains a long way from 2% inflation target. there's no trajectory that they are going to tweak and negative remains negative. they're going to continue asset purchases. the story of the boj and the fed remains one of divergence. shery: a different story and south korea with what central bank's are experiencing, another month of inflation above the be ok's target. so are we now convinced that that be ok -- bok will actually act this week? enda: i'm not sure if it's a done deal, but certainly there are factors. he did say a rate hike in the first quarter is possible. we know that inflation is ticking up in south korea. the jobs market is somewhat approving -- improving there. that's a key concern for the bok. and we know the fed appears to be on the cusp of an aggressive rate hiking cycle. that might nudge the bok to stay ahead of that curve to maintain their concert -- their securities and keep global investors staying in south korea. of course, complications are, as always, the virus. that continues to weigh on consumer sentime

and a boj decision as well. the fed moving to tighten.oda will be looking at any kind of signaling on the economic rebound. u.k. inflation printed on wednesday is predicted to confirm surging prices. president biden marking his first year in office on thursday. shery: it has been a busy year from -- for the president from the covid crisis to ongoing tensions with russia and china but a majority of americans fault president for his handling of inflation, the economy and covid guidance and it does not get any easier. republicans appeared to be in possession -- position to dominate the 22 elections. he has worked to remind voters of his legislative victory on the infrastructure. >> there is a lot of talk about disappointments on things that we have not gotten done. we are going to get a lot of them done, i might add. this is something we did get done and it is of enormous consequence to the country. shery: the earnings season getting underway. goldman sachs and bank of america reporting after jp morgan and wells fargo last week. and keep an

the boj changing the language around inflation. are you going to see more pressure on the end as you see this divergence between the boj and the fed? given the geopolitics of the drone strike in the uae and the inability of some producers to meet their commitments, you are seeing gains of 0.2% for brent. more than 1%. 1.8% for brent. goldman sachs up. $100 a barrel. francine: if we look at little deeper into some of the sectors that are moving, i think energy and technology and travel are some of the biggest losers. energy a little bit up on the side. brent touching a psychological level. this is some of the geopolitical concerns, usually short-lived for the oil market. what is not short-lived is that demand could pick up. omicron is possibly not as deadly as what we thought as well. a lot of these european stocks, energy on the way up attach, but everything else on the way down. tom: that is the broader picture negatively. then you have the individual corporate stories. rio tinto talking about a challenging quarter. that stop down

we heard from the boj yesterday. government kuroda comfortable with the weakness in the yen.e to drive positive catalyst for japanese equities? julia: share. we do see the yen weakening versus the dollar this year, potentially to as much as 120. that's a very clear reflection of the diversions and monetary policy between the fed and the boj. that should help to support japanese exporters. we think that japan is a good story in terms of its investment observations. it seems to be catching up globally. it has good exposure to a lot of the secular growth that we like as well. that said, i think that it's not completely immune from the market volatility we see an underdeveloped markets. especially the u.s.. broadly speaking, as we progress through the year, we think fundamentals for recovery, especially in developed markets, is still pretty solid. policy is still pretty loose. once we get through these volatility spots, we think the and market is still priced to do well. we could see capital coming back to markets like japan which is still quite attractive on earnings and valuati

we'll be watching those numbers as we get the latest on the boj's january policy meeting, as well. at the trading day, corrections are looming for more major stock benchmarks following new zealand and japan's topics. asia equities editor joins us now. and we are seeing a number of asian markets entering corrections or heading towards bear markets. what is the state of play now for the region's act these? >> yeah, the topics in japan and new zealand's benchmark have entered corrections this week, 10% down from their most recent high. we've also got south korea's kospi and china's csi 300 hedged towards bear markets, which would be a 20% drop. like the rest of the world, it's basically the federal reserve looking increasingly likely to tighten its monetary policy, cutting off those funds, which have been driving up the markets since the pandemic swell. you know, on top of that, we've got the omicron cases, which are rising and leading to kind of semi-lockdowns in places like here in japan. and then also we've got ukraine, which one of our sources were saying yesterday that it became

tom: the boj is on one side and the fed on the other.r: it all comes to the relative value on this one. at the start of the year, we saw a number of companies coming to the markets to raise money before yields get higher, and we have seen a lot of demand for this. we have built up cast -- cash balances over the past year. it's depends on whether the trajectory of the yield will be going forward. if we are sure that yields will be going higher, evaluations will be decreasing. francine: thank you so much for joining us. that is a fantastic story and one of our most read stories on the bloomberg terminal. coming up, the u.s. and russia continued discussions in geneva. we will talk sanctions and russia's next move. this is bloomberg. ♪ francine: come back to the open. 52 minutes into european trading day. we see the european stoxx 600 gaining a few percentage points. the u.s. sees the nasdaq a little bit higher after dip buying. top u.s. and russian diplomats have agreed to keep talking even after the first security discussions did little to

the boj struggling to normalize policy. let's get a check of business flash headlines.c's partner in its mainland china brokerage is looking to sell. it aims to cut it stake in hsbc general securities by 10% in a deal with $200 million. nike is suing lululemon. it says they infringe on patents as far back as 1983, it's vonnie: this is "daybreak: asia." i am vonnie quinn with the first word headlines. federal officials say a strengthening economy and higher inflation could later earlier interest rate increases. after the meeting, the fomc and it would accelerate the fed board buying program. the new schedule puts the fed on track to conclude purchases in march. authorities are keeping tabs on investors buying large amounts of foreign currency as they try to contain the lira's slide. the turkish central bank has requested to be informed of any purchases. the leader has weakened 20% against the leader in the past two weeks. hong kong is tightening virus restrictions. the city will ban indoor dining after 6:00 p.m., close venues including bars and gyms, and cancel large-sca

there's going to be that divergence as the fed tightens and the boj stays on hold. also the yield movement we are seeing and the japanese yen to fall against the dollar. the u.s. dollar strengthening by 0.2%. manus: everybody breathing a sigh of relief they do not see inflation coming back anytime soon. thank you very much. we are focused on dollar-yen. let's pivot to the chief white house medical advisor anthony found she. he says it is too soon to say whether the omicron variant will shift covid-19 from pandemic to endemic. >> there is a question as to whether or not omicron is going to be the live virus vaccination everyone is hoping for because you have such a great deal of variability with new variants emerging. manus: everybody is moving and traveling between pandemic to endemic. israel has data on the fourth dose of a pfizer shop. what is it telling us? >> according to this preliminary data from a trial in israel, its is a fourth dose of the pfizer-biontech vaccine was insufficient to prevent infection with the omicron variant. the result comes from 154 medic

ecb, boj relative to one another or the timing of that.t to focus on the differential between the ecb and the fed. for you, that's about boones. in our headlines, we say going to zero. talk me through how soon -- you've upgraded your bund allocation to neutral. what does that mean? salman: as you mentioned, it's more of a relative value assessment relative than saying that boones will deliver positive as it returns. the u.s. treasuries are much more exposed to negative shock, given where we are in the cycle and the vergence is coming through in the policy. it's more of a relative value in that case. having said that, i think the overarching force would be yields to go up higher or from -- cost of money. dani: a few guests see europe playing catch-up in terms of growth. do you see that as well? is that another factor that could perhaps create boones selling off and and ecp that is more hawkish than we expect? salman: potentially, the pressure will always need to be more hawkish than they are right now. what you've seen over the last few mon

stocks, which they say might end if we get the rate shock of them all from an ecb and boj.us: goldman has four hikes, standard chartered two. how does it play in the markets this morning? the treasury implosion around the world continues. cash is closed, futures are open. let's have a look at the board. equities bouncing back. let's have a look. up 0.1% on stocks. 126 on the futures. we are looking at prices falling. dollar-yen, 115. bitcoin, are we in the value zone? shall we have a little bit of bitcoin? dani, what do you reckon? dani: michael novogratz certainly think so. let's dig into this picture more and get to the feature side of crypto. jinping's out has gone from flipping a burger to financing the world's largest cryptocurrency exchange. he is now worth at least $100 billion according to the bloomberg billionaires index. when he sat down with era checks or in november -- eric schatzker in november, he said he is not motivated by wealth. >> i don't really care about wealth or money and all the rankings, it's at or -- and all the rankings, etc. i am happy to donate

the ecb, the boj have been fueling all of what we have seen over the past two years.e are in a very different position this year in january of 2022 then we were last year. bonds are down, stocks are down. we could sit here and point our finger at russia or the fed as a reason why we are here, but the fact is fund managers react in very different ways when their posting losses this early in the year. guy: how do you think the fed is going to react to those losses? you look at what is happening not just in europe, not just in the united states, but around the world. the fed is looking at a significant shift in terms of financial conditions. how's it going to deal with that? it has not actually done anything yet. is there a probability that the fed is going to be more hawkish than the market is pricing in, or is the balance of probability just in terms of managing the risk that actually, the fed is more dovish than the market anticipates? damian: i think spread and equity valuations are going to take a lot of pressure off the fed. this taking a step back, inflation is go

on the back of that, we have that move in the boj, raising rates for a second time.ely, rates going up to 2.15%. -- the move in the bok. take a look at where we are in asia banks, red across the board. the kospi down, and the korean you want also down -- you on -- yuan also down, but keep in mind it has seen four straight days of increases on expectations. commodities taking somewhat of a breather today. rishaad: let's get to the head of asia-pacific markets in sydney. exports going great guns here. what is your initial reaction to these figures coming through for december now in dollar terms and we have the yuan numbers as well? >> a much more concerned about the missed we have on import growth. we have been very worried about a slowdown in china. the recent round of covid restrictions is obviously compounding it, but i think it is much more interesting to see imports slowdown. what accent we will see that disrupting stabilization in china, but on the export side, it actually looked better than expected. we are already slowing. we are just slowing less than expected

shery: when it comes to what we see in the central banks and how they are moving, whether it is the bojdo you see it across assets? what will you be watching? >> the one simple rule is to follow the policy. you go where the policy is being eased. at least for this year, it will be china. china or the rest of the other markets. from a global perspective, it looks to be the case china is one of the larger places where policy is being significantly eased. china policy has always been somewhat disconnected to global cycles. for instance, they were tightening last year when the rest of the world was not. china underperformed spectacularly. that would be one mark and we would be very focused on it. shery: jp morgan asia equity strategist mixo das. earlier, he said we could see lg energy solution becoming the second-biggest stock on the kospi, given the surge we see of more than 60%. jumped 99% in the debut after its record $11 billion ipo. but of course, we continue to watch the stock heading towards the flows. the third biggest company on the kospi after samsung electronics and sk hynix, but

the central bank governor also to make a speech at the boj.ing asahi and other biotech stocks after the u.s. limited coverage of --. in south korea, korea samsung biologics could also move on the u.s. decision as it is also a biogen supplier. korean air says it is deferring plain deliveries from airbus and boeing due to the pandemic and production delays for manufacturers. also, we had the jobless rate come in slightly higher than expected. 3.8% was the number for december, higher than estimates of 3.2%. haidi: up next, a barrage of payment deadlines looms. we follow the chinese property sectors most distressed firms. this is bloomberg. ♪ shery: investors bracing for a fresh wave of volatility in china's credit markets as payment deadlines loom for the property sector firms. for the latest, let's bring in ava mangel. -- stephen engle. more bills for the property sector. what are we talking about this time? >> big bills. not only in bonds, but by the end of the month, they need to pay deferred wages as mandated by the chinese government ahead o

this coincides with the pop in 10 year treasuries, and of course the boj is still very easy about policye market is trying to look for events, for lack of better word, dollar strength and dollar-yen is one of those easy ones where you have one key driver, the 10 year treasury and that is driving dollar-yen higher. haslinda:haslinda: you are betting on a strong dollar. how is that impacting demand for oil? oil has the same bed rally, but can it get to $100 that some predict because of dollar strength? >> we think it is pretty much talked about, 90 or even 100. if you look at our forecast, we see oil consolidating, brent crude consolidating be $80 a barrel. -- below $80 a barrel. although opec is reasonably optimistic in its tone, it is still uncertain to see how fast global oil demand will recover back above the magic 100 billion -- 100 million barrels a day, the pre-covid level. there hopeful for this year, but until that materializes, opec continues and don't forget you have the u.s. pr release the background. rishaad: thank you for joining us, koon how heng, from united overseas bank.

we continue to see significant weakness given the focus on the divergence between the boj and the fedwe are also getting core cpi numbers, missing expectations and coming in at 0.2% growth year on year for the previous month. take a look at the kospi right now, gaining 0.4%. we are also seeing one of their stocks that we have been following, sk hynix, which came in with operating profit that beat estimates, now gaining more than 1% at the moment. this as the kospi just entered a bear market after falling for the past 15 consecutive sessions -- past five consecutive sessions. they are down from their july peak, but we will see how they close today. the korean won has also shown significant weakness in the past . it continues to weaken against the u.s. dollar. we have south korea's industrial production numbers coming in earlier and beating expectations, though, paul. paul: in australia and new zealand, we are seeing equities cut off their earlier highs. new zealand in negative territory, off by two thirds of 1%. in australia, up just a quarter of 1%. the weakest stock on the index righ

we have that boj policy minutes dropping in the last hour.r say in japan's inflation is largely due to oil and commodities, so they won't hesitate to add easing if needed. the continues to strengthen and is now past the 114 level. -- the japanese yen continues to strengthen and is now past the 114 level. haidi: trading in sydney down, the lowest since the start of december last year. we have seen every single segment in that market trading lower, the steepest losses seen across energy as we get a pullback across energy prices. wti crude off by just about 2%. energy and materials the biggest loser in australia. we are seeing downside when it comes to broader tech stocks, given those broader concerns. we have seen the aussie dollar outperforming in the previous session, but given back earlier strength. new zealand stocks also continue to fall, trading at the lowest e than six months. sher good thing that you mentioned tech. shares of u.s. listed chinese companies boasted their biggest games this year as u.s. tech stocks slumped. that puts the g

i put in the yen because the boj looms on the agenda this week. i put in the brand price as well.el of oil, $85.75. that is something the market is very keenly watching. through 2022 so far, we have seen strength in the energy space, strings coming through in commodities. i also put in the unilever share price, moving to the downside. a lot of concern that this consumer goods company might become to to overpay for the consumer arm of gn k. will they come back for the fourth bid? that stock is down by 8%. now for the latest commentary on the markets, let's get some analysis. james savvy -- james athey at aberdeen joins us. good to have you with me this afternoon here in london. let me talk to you about what is going on on treasury markets. we don't have treasury trading today, but it is to some extent turning into a global narrative, and it is something we will be focused on a lot this week. we've heard from jamie dimon over at jp morgan, who has talked about the possibility of having seven hikes this year. what is your expectation for the fed in terms of the number of hikes? what