as expected for the boj.qian: yeah, i think the boj decision is fairly in line with our expectations. the rate decision was unanimous and the boj definitely sees outside risk of inflation. it's likely the wage inflation virtuous cycle is gathering were evidence. haslinda: boj also seeing underlying inflation is expected to rise gradually, a sentiment you expressed earlier. peiqian: yes, i think from what we observed in this year's inflationary trajectory, we've been completely the anchored from deflationary expectations in japan, but we are still on a pathfinding trajectory to a new level. i think with more evidence on wage growth gathering pace, it's likely it will contribute eventually to a higher inflation trajectory, which is likely to anchor again around 2% in the long run. haslinda: if it is as expected, why are we seeing the kind of reaction in the yen right now? it is touching new 34 year lows. peiqian: i think that is the market expecting or hoping for hawkish rhetoric from the boj given where the ye

and how this yen depreciation will figure into the conversation for boj policymakers? we are waiting with bated breath whether this forces the japanese central bank to come through with hawkish signals. we do have the open in japan now and now the big tech tailwind for stocks. a little bit of upside on the nikkei at the start of trade. we are still seeing dollar yen hovering at 155.6. of course it's about whether we get any indication about curtailing of bond purchases from the japanese central bank. seems like the bond markets are betting we do coming on the japanese 10 year government bonds. let's take a look at what we are seeing in south korea. yesterday we saw those declines on stocks as the meta-earnings and outlook put a dent in what was otherwise a recovery for asian stock markets. taking stock, we've seen four of the seven banks report and so far it looks quite good, especially after microsoft and alphabet knocked things out of the park, proving their worth and that they are able to make money from aia investments. we've seen the upside in south korea as well,

we are waiting for the boj decision tomorrow. are some corners of the market that think given how inflation is trending we might see some signals of quantitative tightening coming through. i will flip the board again and take a look at how china futures are pointing to a negative open. this is after we got earlier in the week the hong kong stocks really shining and coming back, outperforming global markets as chinese sentiment turns. sentiment towards chinese equities turns, i should say. we are watching out for the story that sources telling bloomberg news chinese officials have been telling brokerages to curb their exposure to the risky products, snowball derivatives among the things we are watching in the markets today. paul: thank you very much. let's turn now to geopolitics. the u.s. secretary of state has arrived in china. he is on a mission to press beijing on issues including it support for russia and industrial overcapacity. antony blinken will meet senior communist party officials in shanghai on thursday, and then he ha

it will be interesting from the boj on the back of all of that. still to come, counting down to the bank of japan rate decision and former boj board member sayuri shirai will talk about many things including whether the young's weakening streak will force the central bank to send hawkish signals. first we will talk to futurum group about whether the tech rally has led to alphabet and microsoft sales to skyrocket this is bloomberg. ♪ to me, harlem is home. but home is also your body. i asked myself, why doesn't pilates exist in harlem? so i started my own studio. getting a brick and mortar in new york is not easy. chase ink has supported us from studio one to studio three. when you start small, you need some big help. and chase ink was that for me. earn up to 5% cash back on business essentials with the chase ink business cash card from chase for business. make more of what's yours. paul: let's take a look at how some big u.s. tech names are tracking after hours. look at alphabet ago, up by 11.7%. beats on revenue, earnings-per-share, buyback of fi

i think the boj is preparing to intervene. so that could provide some short-term relief for the strength of the yen, which has already lost too much ground. however, it is not about the yen, it is more about the u.s. dollar. if the ecb cut rates in the summer in the interest rate differential between europe widens, we will see more strength of the dollar coming in. i think the boj will act very cautiously if they do it, they will do it at the perfect timing. paul: with the fed looking less and less likely to ease this year, if they do certainly towards the end of the year, is there a window for the boj to perhaps act a little bit more aggressively? this is our bloomberg question of the day. do you see the bank of japan or the fed moving rates more in 2024? jung: so, probably we have a very slim chance of any rate cut this year. somebody is already talking about a rate hike but i think they remain a minority. however, in this market the greed can be taken over by fear very easily. and we have ecb moving into cut rates in the su

that's a dovish forecast for the boj.e and that in terms of the pressures coming through? to what extent does the softness of the yen strain that kind of policy action? >> i would say the risk for that few would be that they move a lot sooner and more aggressively. so you could go straight to 25 pips in july. so there are some risks. let's think about this, does an extra 10 basis points really make a meaningful difference to the carry trade or the rate differential? especially now, it's not just a yen story, it's the dollar side of the story we need to consider. look at the debate about when the fed will start the easing cycle. that has been shifted out by the money markets. it's a very challenging backdrop for the ministry of finance if they intervene in for the bank of japan. that rate differential still stays quite higher. tom: does intervention happen, if it happens, does it have a material impact? >> so far they have been verbal intervention. material intervention, and this could happen a number of ways, it does seem

annabelle: does the boj need to be more fx focused?e see the weak yen getting close to 160 and perhaps dampening consumption trends? >> on friday governor ueda did not express a lot of concern. the yen is down 10% year-to-date to date but implied that is not had too much of an upward effect on inflation and will probably take the outlook report suggesting it will take until 2026 for inflation to sustainably get back to targeted, so i think the message from the boj was we need to normalize policy very very slowly, and that clearly led to a further yen selloff on friday 2150 -- to 150. as long as the fed and other central banks are relatively reluctant to ease, the yen is likely to be on the back foot. haidi: you talked about it all being down to the fed. is that the bigger anchor now in a dominant way than china and is that relationship between the e.m. complex and what is happening in china becoming de-correlated? >> we think the fed is most critical in terms of how em central banks are behaving. china growth has held up moderately so

we will bring you live comments from the boj

some think we could get intervention post boj. sheer timing, especially as we wait for pc numbers out of the u.s. late friday asia time and next week consider japan is on a public holiday on monday, these are among the things to consider. let's foot the board and take a closer look at the stock markets in japan. they are feeling the pain, a reminder of how fragile the rally in japan has been and how it perhaps needs to broaden out to domestic oriented stocks. haslinda: thank you. let's dig deeper into the yen with our editor. 155 and change, down 1% versus usd this year. you say intervention is unlikely, right? mark: a couple things. i remain staunchly bearish the yen, long-term bear and i think the yen yen will continue to weaken this year. but i don't think it will continue to weaken much more against the dollar. i think the risk reward is changing. in the short-term, while i don't expect intervention, i don't think it's a high probability risk, the fact is you do have the boj risk of being hawkish and precedent for a dovish boj

brian: so far boj in private sector have been close. for the fiscal year is 2.4%, we will see a higher forecast later this month. private sector has been doing the same thing. bnp paribas raised its forecast this fiscal year to 3% from 2.2 based on wage increases that were surprising. we sought snb nikko raise this fiscal year, so you could say the boj is in line, catching up with the private sector if it does increase forecasts this fiscal year. haidi: asia economy editor brian fowler. from the boj to the rbnz, expecting them to hold at five and a half percent because of inflation risks and sluggish growth. let's get more from the deputy executive, christina. we will start off with your latest reports and something suggesting quite a bit of downside when it comes to sentiment and confidence in the economy. is that a good enough reason for the rbnz to consider moving forward the timetable for easing? christine: with the outline shows is a decline in headline confidence and activity when it comes to what foods are seeing in their own bus

we had the boj and the meeting is expected on friday.xpected to be a live meeting but the estimates are that they are not going to go again. we will see how that transpires of course. intervention watch is in focus when it comes to the japanese yen. is there a support level for the yen that you are looking at? what are we looking at in terms of further softness for that potential move? >> expecting 160 towards the end of the year so further yen weakness and then because right now we can't imagine bank of japan hiking even more, the inflation is very low and we see no reason to hike in the end. >> is that assuming that they intervene, is that assuming that intervention doesn't work? >> they could intervene. they do not have the firepower to keep the yen stable. >> targeting 160 on japanese yen , intervention is not going to cut it for that. we turn our focus to the u.k. and the pound in light of that dollar strength. there is concern about the inflationary impact in the u.k. given our need to import. when it comes to your view on sterling

haslinda: we are also keeping up on what the boj is likely to do, the next challenge for the boj is toull back stocks and bonds in the market. how do you see the boj doing that when it holds about 15% of jgb's and about 80% of etf's in the market? >> the boj have been doing some irrational things for a long time, and it's quite possible for them to continue that. i think they have woken up to the fact that the bank's policies really did not do anything to accomplish -- to accomplish inflation targets they were pointing at. now they are thinking of doing something differently, but it remains to be seen if they are able to really make a dramatic change in their policies. i'm sure there is a big debate going on within the financial circles of the governor about this whole issue, what to do next, and it's not easy for them to change tack. haslinda: is it possible for the boj to withdraw without causing market turmoil globally? >> yes, it is possible for them to do that. they would have to do it rationally, but there's no question they could do it without creating any the issue. haslinda: h

the boj is forced to do something and we recently upgraded a call for boj to hike in july. haslinda: whether boj or ministry of finance intervene, we look at a level of 156 and change. that's not that much stronger. it wasn't until long ago we talked about intervention out 150 and 160. at movement we look at 156. it is a very weak currency. >> to the extent it is making headlines in the japanese local media on a daily basis, hitting for your lows it has actually became some sort of a political issue. i think the growing chorus of the public discontent could also be an additional angle that the politicians might exist some weight of boj. even though fitting through inflation is not high. it always happens with a lag. i think there could be new forces in play. haslinda: china and the pboc must be looking at the yen movements very closely as well. what do you make of where it is headed? some are suggesting the stability in the currency would provide stability in the yuan. >> i think so far the pboc has been doing a great job. the market is not testing the pboc. but i think you

the yen extends declines beyond 155 per dollar as the boj meets. bhp approaches rival anglo american with a takeover offer. the move could spark the biggest shakeup in the industry in a decade. the launch of earnings begins in europe with much of the focus on this morning's data around the banks, starting with deutsche bank. crossing the screen, germany's largest lender coming in with a beat for its fixed income trading team. there was an expectation they would do well and they have outstripped u.s. peers with fixed income sales and trading revenue coming in above estimates, 2.5 2 billion euros above the estimates of 2.4 one billion euros. the bank seeing 2024 revenue slightly higher year on year so a beat on the revenue front and the fixed income trading team at deutsche bank doing the heavy lifting in the latest quarter in terms of sales and trading revenue. in terms of 2024, the private bank revenue has been flat year on year and in terms of expectations, 2024 around fic, fixed income and currency trading revenue, slightly higher year on year is

we lead up to the boj meeting decision on friday. how is the unexpected to react around that meeting? mark: it is going to be a tricky week for yen traders, because even before you get to the bank of japan meeting, you've also got this treasury option coming up. they will probably talk about that in a moment. when yields rise in the united states, if you remember, the cpi event in the u.s. was the one that triggered dollar-yen going above 152 a couple weeks ago, and that we are not far from 155, so we've got to get through that first. but clearly the way the japanese are speaking, there is a lot more weight being put on the bank of japan meeting. governor way to -- the governor has said more than once that the yen impact is something he is watching closely, but if anything, it is getting worse. he is also concerned about the purchase of jgb. he does not want to buy the huge numbers his predecessor was buying. he's looking for ways to reduce jgb holdings. that is a slightly hawkish sign, which should support the yen if he puts it toge

so if the boj is not in any hurry to hike, it would lessen pressure for the yen to go higher. so in this case i would concentrate on the domestics because the economy is looking pretty good versus the rest of the globe. so domestics stocks like banks, insurers, consumption stories, those are the sectors one would be looking for. if exporters are ok, you do not know when they yen will be strengthening. if they do strengthen it would hurt exporters so for the short term, the market is looking fine. longer-term, they have more room. annabelle: one asset class that has not been moving in a way investors anticipated was gold and it is likely to track closely. at these levels do you want to buy gold? daniel: not here, but if it goes back to 2200 or 2100 level, it would be looking interesting. right now there has been demand for chinese investors for gold because they are looking for alternative investments, but if you see chinese markets coming back in some sort of form they could be lessening upward pressure on gold a little bit. haidi: daniel lam, head of equity strategy at standa

is there a role for the boj as well? see another incremental step towards raising rates down the track from the boj, what would that do to stabilize the end? -- yen? paul j.: if investors can see that the bank of japan is on track to continue raising interest rates and to go in the direction of normalization, that could help the dynamics a little bit. i think a lot of ministry officials expected that the first rate hike since 2007 last month would already help those dynamics. but what we see in the market is clearly, we need more. i think the main conclusion we have to draw from what's happened in the last 24 hours is really, it's all about the fed. paul: yeah. it sure is. paul jackson there talking about some of those movements we've seen in the yen today. tensions with china are set to dominate thursday's summit between the japanese-american and philippine leaders. so i want to start with you, what are we expecting to see from this trilateral summit? >> i think the center of it all would be tensions with china. given t

the backdrop for the boj to hike is there.ous cycle looks like something you could use to describe it yen intervention depending on how inflation comes through, do you think there is a chance policymakers might hold back and wait until it has been exhausted? roderigo: yes, yes. intervention is the challenge. otherwise it will not be effective at all and that is why vocal intervention is actually doing the job. dollar-yen has been at 152 for quite some time. if interest rates trade higher, they will have to step in. the argument that the yen is cheap on a fundamental basis becomes harder. so our sense is if yields trade higher, they will have to allow dollar-yen to trade higher or it is too hard to intervene. haidi: seeing recovery a lot of asian currencies were at their year to date lows. is there risk of further weakness? roderigo: asian currencies in the australian dollar is what is going on with the policy that they may want to take. we saw them move up to 723, so that allowed depreciation to occur in made the market nervou

and july could be the timing for the boj to hike.g, bank of japan will release its inflation forecast. that is quite likely. after the upgrade, think of japan can hike any time. so june is a bit too early, but still june meeting with decent chance of boj rate hike. that will support japanese yen. annabelle: thank you for your time, that was head of japan fx strategy in tokyo. more ahead, this is bloomberg. ♪ >> stocks watching when trade opens, energy, defense, equities may move after iran's attack. her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. an

what is a level that is comfortable for the boj and the ministry of finance, below 150? claudio: no, i think in a certain sense, if we got back to 150 level, that would be ok. and in some sense of what we are seeing, it is important to look at real exchange rates in the region. if you look at real effective exchange rates, the renminbi is at a 10-year low. if you look at korea, it is a similar position. it is important to not just look at the nominal exchange rates but the real value. and we are still faced by the fact that by that metric, the dollar is looking overvalued. the question is when does that dollar cycle turn, and we keep extending that in the u.s. economy with the economic outlook out. i think that just shifted to 2025, and that is where the grounds have shifted to, so i think everybody has now conceded that to the rest of the year we will see the dollar strength continue. haslinda: how much capacity do several things in this part of the world have to resist and wait for the fed? claudio: it's difficult. we are running on thinner ground . we just mentioned i

aggressive policy action from both the ministry of finance, concerted and repeated intervention and the bojignaling a willingness to normalize policy further are necessary to stabilize the currency and cleaver signs a stronger across the water economy as well as signed the treasury yields have peaked will be needed before a sustainably and rally could actually get going. that is the push this morning. that currency pair has been an absolute mess so far in april. coming up the sour, fantastic lineup to get through. the yen bounces off a 34 year low and wells fargo looking ahead to the fed. u.s. stocks coming off of the strongest week of gains so far this year thanks to a big boost from big tech. lori writing this, we still believe our target of 5300 is a reasonable expectation. the key thing we learn from our survey is that even the higher rates are a headwind, there is a confidence in the stockpicking community that this challenge can be managed. lori joins us around the table. fantastic to see you. i want to start with this. we went through some of the big names in big tech over the last w

amid all this, the boj is set to hold rates on friday but given how the week yen is affecting the outlook for inflation, there are some bracing for the japanese central bank to perhaps start announcing quantitative tightening. we are also seeing among asset classes the stocks in the chips as well as the tech sector. those are the ones bearing the brunt of the selling. infotech down extending declines from last friday. look at some of the movers. this is against the backdrop of nvidia that tumbled 10% on friday. the steepest drop in four years. begging the question whether they will live up to the high expectations regarding the ai theme. haslinda: it is still among the best performers yet -- year to date. markets will focus on u.s. big tech earnings. tesla, microsoft, meta, and alphabet are all do. >> we are hearing it is all big tech. >> big tech has great balance sheets with a lot of cash and little debt. >> companies generating extraordinary amounts of cash flow are still doing well. >> tech is a big part of the quality story. >> looking out 1, 2, three quarters, it will start running

>> boj will take their time. they want inflation to get entrenched after all these decades of the inflation. haslinda: we are also looking at oil. some suggesting it could get to 100. what is the risk of oil -- taken a step back and efforts to cut rates. >> a very important point. the conflicts begin to broaden. let's say we get a shocker in the middle east and oil goes beyond $100 a barrel. i suspect the fed would have to rethink its strategy. they will be cautious about cutting, at least in the near term. as soon as the middle east situation calms down, probably around $85 by the end of the year. haslinda: and gold at an all-time high. is that surprising? geopolitics possibly supports gold at such prices, but it is also a hedge against all the risks. >> gold is definitely proliferating for a few reasons. we've got all the tension in the middle east but what is underlying this is that central banks were shocked after the war in ukraine began. gold cannot be seized like dollars or euros or yen. >> the chief econo

the boj is a completely different story because the job morning has stepped up.f you look a little bit long redo expect the boj possibly will still go for policy normalization, meaning it could possibly hike rates. as yields rise, think it will narrow the differential between the dollar and japanese yen. but is it enough to reverse the overall trend? short term i think you also have a lot of worries. haslinda: joe biden and xi jinping talking to talk. how were you parsing through that meeting? >> the pressure definitely is on tiktok. yellen is going to make a trip down to china soon and on her agenda she is talking to be about china's industrial overcapacity. so i think we still expect it will be a lot to address the issues. industrial policy sounds like a little bit of overreach, actually. the question is whether you will get any of the points between the two big powers, we still really have to wait and see. haslinda: geopolitics can hamper the growth you have been talking about. >> sure, it can, but i wouldn't expect too much in the way of market moving materia

risk factors will prompt boj to move faster than market consensus.le: asia government senior editor brian fowler in tokyo. china slammed the u.s. threat to impose restrictions on products. they say washington is undermining the security of the global supply chain. biden is proposing levies on products as part of a review. the steps would have minimal impact. ip protection is a key focus for officials amid tensions. kathy of the doll met with a top chinese official. we asked what message she delivered. >> we need strong protection in china. we spoke about innovation and u.s. company interest in being successful with a strong ecosystem. >> i've been covering china for more than 30 years and every year ip and the threat of theft has been a big issue. it seems to be not at the foreground of u.s. china relations but i'm guessing as head of ip protection that it is front and center of your attention. where are the biggest sticking points? kathy: one big issue is transparency, always at the forefront in terms of interest in u.s. companies. some improvements

that beat consensus, and it's about the boj's 2% target range. and as you mentioned, politics. happened wednesday, one of the big topics on the minds of voters was rising frustration about the cost of living, which is shooting up, and we saw how that played out just from the standpoint of optics. it would not look good for the be ok to come out two days later and cut interest rates. haidi: there are also multiple channels where a fed move would affect south korea. how does that play into this? >> that is a big part of this. in the u.s. as well we have seen inflation much stickier than expected, and that has pushed back expectation for fed rate cuts this year. that, of course, all things being equal will support the dollar, which puts downward pressure on asian currencies. the yen is a big part of that, but the yuan as well as they are one of the weakest currencies in asia this year, and that's a big problem for a country like south korea that relies heavily on imports of fuel and food because that could push up costs, push inflation, which would make things worse for households

some think we could see boj signals coming through.n hit 15485, highest level since june, 1990 despite the solider. -- softer dollar. we got the finance minister of japan bringing the verbal level back toward that level. seeing concern about risk given how traders are piled in one direction betting on yields weakness. leverage fonts asset managers based on yen weakness last week, figures have risen to the highest since records began in 2000 six. among the risks. as i say, what we heard from the finance minister has helped to calm what we are seeing on the currency. guest: fair to assume the environment for appropriate action is in place, the i will not say with the action is. avril: stock benchmarks in japan fluctuating amid comments from finance minister, not giving us the sense of when we might see intervention, but conditions are conducive. we are seeing benchmarks pullback from march, the peak despite investor interest in how it has been a darling in japan. haslinda: amazing to think the yen is close to 155. thank you. a new report

we are on the eve of the boj meeting.as suggested it is quite eager to put a floor under the yen. it's the ministry of finance's job to conduct intervention. how close are we to some sort of policy change from either the boj or the ministry of finance? >> so there's two sides to the story. the first is that there's almost nothing priced for the bank of japan. the risk reward is probably to position for some kind of hawkish surprise. that makes sense. there's also president for friday afternoon new york intervention from the mof after disappointing bank of japan. that happened september 2022. so there's potential that we get intervention this week. however, there's a couple of other qualifiers here for generally why i remain very bearish on the yen even if the risk were wars -- risk reward is less advantageous. people have gotten excited by the cftc short positioning. it's only a small subset of the market. it's not a catalyst for the trend. it can give momentum if it really rebounds along way. it needs a separate catalyst

but i think as a coordinated effort, much of the heavy lifting will be down to the boj anyway.as a result. it is a case that the dynamic, or the indirection between the u.s. economy and the rest of the world is playing out. until that burns out for the rate cutting cycle kicks in, i don't think there is a whole lot they can do. if you noticed, the yen itself is probably down about 9% year to date. but because of the increased jawboning, it is only down about 2% month to date for april. you can see the effect. it really is slowing down the yen's descent, as it were. but that can only last so long. if the data continues to come in hot for the states, fundamentals will dominate. i think the boj and the mof are trying to create that narrative where there is a disconnect in the fundamentals which would give them a reason to intervene. and they have got that tacit approval out of the g7 when candidate said everybody was on board for me g7 per if. but as far as asia is concerned i think it is going to have to come from the ministry of finance. but maybe not until the end of the year.

seeing more conviction perhaps when it comes to timing around when the boj could be moving. this as governor ueda kicks off his first anniversary under his belt at the home of the bank of japan, having dismantled this huge stimulus experiment. the question is what is next. the 10 year is also looking to see some reaction from what we have seen across treasury and markets. take a look at korean markets. politics is in focus as the election really hinges on what urban voters will respond to the macroeconomic outlook and easing inflation pressures as we see polls indicating top issues had been tackling into inflation, household wealth and the like. tech stocks doing well. watching dollar want given the recent weakness but of course a lot of the recent weakness across broader asian fx, not just the yen. paul: let's look at how we are doing in australia. moving modestly higher in the early going. a couple minutes in, so a number of names still yet to begin trading. already we have materials among the best performers pretty we have seen a recovery in the iron or price. we have see

also the divergence between the fed and the boj continuing to be a pain for the bank of japan. paul: we saw the yen move higher, stronger than expected factory gate from the u.s.. we are hearing from chris, from the rba. he is not ruling anything out when it comes to the future move of rates in australia. haidi: he said uncertain when he was speaking upstairs earlier at bloomberg offices in sydney. uncertain is also what we are looking ahead to in terms of how the yen plays out, in where the intervention comes. we are under that, but looking pretty close with the dollar at its highest, pretty much its highest levels we have seen so far this year, at least since the little of february. the nikkei 225, stronger by .25%. we did have the first day of the fiscal year for japan. we are seeing investors at the start of this week doing profit-taking, particularly when it comes to the performers. we are seeing broad upside as the nikkei comes online. watching those chip stocks. we had news of further investment from the governor -- government, looking to make those two nanometer chips.

the bot has been -- most analysts expect the boj to keep its benchmark steady for the third straight been pushing for a rate cut and there is reason for that. we are seeing inflation easing for consecutive months. >> yes. he has made a lot of big promises to boost thailand's economy, to lift growth over the next four years. that is a tall order given that taiwan has grown an average of below 2% for the last decades. so he has used up most of his physical firepower. one of the key strategies he set out to achieve in the short-term , he has been exerting relentless pressure to cut rates from 2.5% which he says is way too high for an economy that he thinks is in a crisis, with sluggish growth and week demand. haslinda: credit to the bot for resisting that pressure. >> it has been resisting so far because it doesn't think the country is in a crisis. committee members would be looking out for clear signs from high-frequency data at the sluggish growth trend is here to stay and that domestic and internal headwinds are not going to retreat any time. that said, even if the mpc doesn't cut ra

we bring you more on the end, the boj. >> this is bloomberg markets today.trade is one hour away. the last few hours have seen wild swings.

decision this week and it is a catch-22 situation for boj officials given you have the week yen that could be adding to the inflation story but still they are not likely to hike at this point. weekends supports the exporters and today -- weak yen supports the exporters. and we saw sharp losses in the tech sector. let's look at korea at the start here because we see it moving a little higher, trade data dropping, first 20 days of april numbers for trade and exports rising 11% for the year, positive for korea and a barometer for global trade as it could play into the story korean won has been against the backdrop very much of king dollars so just recapping the trade numbers for the first 20 days of april, exports up for the year and imports gaining as well and we have as i said again the first 20 days of april so a reversal from a contraction the month prior. paul: australia has just opened for trade and it is a stagnant open but we see modest again -- modest gains. a theme we saw towards the end of last week even though losses on asx gold stocks did well in energy stocks did well and

i think the boj is going to be patient.ollar. i think the pressure will build. ultimately japan is going to do more and the economy is going to do better than people expect. they will do less on easing, the boj is tightening, and we will get better growth and people anticipate. lisa: i know this is a difficult question and everyone has a slightly different answer, but where are we in the economic cycle if you are talking about affirming europe, japan at a time when a lot of other people are talking about u.s. exceptionalism and a potential for late-cycle types of behavior? bruce: you can come back to this tension on high for long, and i think when it is embedded is an inflation dynamic, even once we have taken out the highs we had in 2021 and 2022, and a position in terms of monetary policy, labor markets that screams late cycle. i think with the pandemic has done is, it has created that dynamic, as well as a far more positive dynamic in terms of where the positioning in terms of leverage, durable spending, profit margins,

was it japanese boj intervention? they remain mum on the subject. bitcoin, down against the u.s. dollar by 1.25% with a risk off yield more generally and etf frozen. what are you looking at on the micro? ed: tesla, which is a big, almost surprise story. just a few tenths of a percent away from its biggest jump since january of 2020 two. similar to the gains we saw april 24. full self driving in china according to a bloomberg source. two subsets of that. a partnership with baidu on income mapping, specifically for the china market, and an agreement over data privacy or terms on data privacy that would allow it to move forward with fsd. big reaction in the market. elon musk went to china over the weekend and met with the premier, a surprise seven days after he bailed on india. there's a lot to unpick in this one and it's a move higher in the tesla stock. catherine: bloomberg, of course, all over this story. it was a surprise and it looks as though the meeting for fruit. what does it mean for the robotaxi autonomous vehicle future that he paints? >> we have to separate out robotaxi

this point but let's shift on because korean markets starting to trade and not is the focus on the boj but the bok given the rate decision that is due and broad expectations we will see rates hold and we had job figures out in the last hour pretty tight labor market was the key takeaway and that gives the bok time to wait a little longer haidi. haidi: looking at the start of trade five minutes or so in the session and australia a little down side and quarter of 1% softer with declines when it comes to aussie bonds and kiwi bonds as treasury features head for a second weekly decline amid ongoing concerns about the state of u.s. inflation remaining elevated. the aussie dollar losing a little ground and much of a move when it comes to the broader dollar index looking at treasuries it looks like we are releasing downside for the second week as we see brought -- bond traders shift their thinking to a no rate cut world as we continue to hear that sort of management of expectations from said speakers including the latest being susan collins overnight. annabelle: the moves we see on bond yield

consumer stocks are weaker, a catch-22 for the boj, yen week. boj needs to curb that. holding steady will give traders incentive to push past 155. let's change to korea, the kospi online up more than 1.5%. small caps are in the green, texas instruments is a another name with a solid forecast. come back in demand so chipmakers, the korean won is weaker against the dollar. paul: in australia, staggered open. pre-much flat in the aussie dollar was showing strength relatively speaking, knocking on the door of $.65 u.s.. were going to get an important cpi prints. cpi and australia is easing, still outside the target band, but encouraging progress. the trend mean is the metric dropping to 3.8%. energy stocks modest -- positive and a recovery in crude prices, brent up at 88.50. let's take a look at how bonds are trading in the u.s.. we saw solid $69 billion sale of two-year notes and treasuries extending gains. two-year above 4.9, backing off high levels. 70 billion of five-year notes and 44 billion said in your notes after. our next guest, global fund manager at blackrock. y

the boj reported on both of them at a drop of 7.5 ¥6 trillion and its current account today, much largeran the ¥2.1 trillion expected, suggesting an intervention of about five .5 true union took place the ministry of finance refrained from confirming that there was intervention after rapid appreciation took the yen to about 150 per dollar on monday. is our little weight on the muskets to respond to the temporary truce in hostage release proposal. the state non-news says the israeli government is expecting an answer from the iranian-backed militant group wednesday evening. the internationally mediated proposal says israeli forces agreed to withdraw from portions of gaza, austria is tightening scrutiny of minerals. the rules also include speeding up approvals and ignore risk areas to boost economic growth, china's dominance in the clinical minerals supply chain has prompted us to get to boost its industries by working with allies like the u.s., japan and south korea. binance founder changpeng zhao has been ordered to spend four months in prison for failures that allowed cyber criminals and

that tells us the boj is probably in no rush either. as long as it continues to exist, does that goldilocks scenario for japanese equities continue to play out? steve: certainly our favorite market at the moment is still japan. we see a little bit of vulnerability coming through. what was interesting is when the bank of japan tighten -- tightened policy, the japanese market has been on the tear. we expect that after a short period of weakness to continue. this is not just an economic story, although that is important. but it is also a big long term change in our view of investor behavior locally, where investing in bonds, negative real yields makes no sense, and obviously equities have an inflation hedge. it will be a gradual process but could have very important implications for the outperformance of japanese equities. haidi: it is interesting to me that you are overweight korea because the expectation is when it comes to the governance and belly up efforts it will take a number of years the way it has taken japan to get to this point.

annabelle: of course, the notable outlier for that is what we see from the boj, and we have the meeting coming up this week. no change expected but what will you watch for in terms of signaling for future rate hikes? diana: japan is really an outlier here. what we need to see is what happens to the inflation data. the latest data from japan was softer than expected but at the same time in this week's bank of japan meeting, they are likely to revise up the wage forecasts because of the higher shinto wage negotiations that have occurred. we are needing to see higher inflation data from japan that is sustained and running towards the 3% level on an annual basis to see hikes from here. like central banks not in a hurry to cut interest rates, the bank of japan isn't in a hurry to hike. annabelle: on that point, needing to see more inflation, where it has come from in japan historically, or in recent years is more on the supply side, not the demand side. how much are you tracking, and this is across other economies but how much are you tracking oil prices and the risk that puts into the pictu

the boj is not in a hurry to pick up momentum. do you continue down the same path or is there some rebalancing? >> continue down the same path. a little bit of a rally in europe and people are taking profit. we like energy. that is the u.k. market. we would not go underweight commodities could the massive basically 245 eps for the s&p 500. if you want to get those numbers to the 247, 249, you need an acceleration of the earnings. it is a bit unpredictable but there are earnings in north america. we like nikkei, south east asia. we like the american market. on their recovery picks up and becomes more broad-based, you will see beneficiaries being the russell 2000, the sustainable rallies which has not happened. that is yet to work its way through the market. that is probably a 2025 story. paul: we have heard from a number of fed speakers over the past few days. i'm wondering if your view of the outlook for the u.s. dollar has changed at all having listened to all they have had to say. >> nothing much changed from our point of view.

this is an angle that boj governor ueda has been highlighting in his recent speeches. so our view is we are pretty close to the intervention level. we do not rule out 155 as the trigger. but maybe the weakness in the currency might be slightly on the excessive side. annabelle: let's speak about inflation hedges because you mentioned commodities earlier. gold is really standing out this year with the run-up we have seen. would you still find it attractive at these levels, and if so, how are you looking to play it, getting exposure to it? homin: in our portfolios we have strategic -- we have benefited from the gold position this year. the gold prices have actually detached quite a bit from real rate in the u.s., potentially due to hedge fund positioning on the precious metal on top of aggressive buying for some emerging market government including china. that divergence is a bit tricky from our perspective. we are not chasing it at this juncture but we have a position in the portfolio and is -- and if the price corrects a little further from here, then we would suddenly

bank of england, doj -- boj, or ecb? george: boj first come ecb second, boe third. we have looked at the ecb as making policy mistakes. i think they are trying to do proactive. i think they will have to ease before the fed. that is a challenge for them. to sit here and do nothing is not the right course of action. jonathan: do think there is any ability to go further beyond the june rate cut? george: at a minimum what could have been his, you want to backpedal, this could enter into an environment where central banks ease and skip meetings and try to calibrate in between. slow down the process and not changing her to every other inflation report. jonathan: 152 was the line in the sand of intervention and here we are at 153. steve said a hot print would mean fighting market fundamentals, that is a difficult intervention proposition. given where the fundamentals are and how strong the tide is against the boj, do you think they can intervene in the fx market anymore? george: the challenge is for the better part of 18 months as the fed was hiking and all of these eases

would any sort of government intervention be when you've got that ongoing cap between the fed and the boj? what we are seeing here for equities at the start of the day is a little bit of pressure, following what happened on wall street overnight because we had the s&p 500 on its longest losing streak in several months. really big tech bearing the brunt of that. earnings and focus, given we have a number of big tech names reporting over the coming days. that could leave clues on the health of the u.s. economy. also whether we will see any sort of big ai led rally sustaining the momentum. let's chains on. take a look at what's happening in korea to start the day here. the korean won firm are here against the greenback. six tense of 1%. broadly, equities just modestly in positive territory. fx has been a big talking point. the imf spring meetings are underway in washington. we know that we do have the finance chiefs from the u.s., japan, korea leading. they are all expressing concern. as we also hear from the bank of korea governor saying that the juan levels are really diverging at this poi

last time boj intervened was october 2022. >> yeah.entions -- they work for a couple of days. raising rates, though, they raised rates, the yen weakened. they can raise rates some more. the market's going to call them. i'm one of these few people that believe the yen will continue to weaken, which, theoretically, like a lot of people say, that's a risk-on thing. it's going to be a huge risk-off thing at a certain level and i think we're close to it. >> yeah. >>> coming up, alphabet shares are back at all-time highs. how much more gas do they have left in the tank? >>> plus, trouble for trump. the truth social parent reported a huge loss for 2023. n t cath maintain the valuation? that's right after this. hi, i'm tali, and i lost 85 pounds on golo. all my life i struggled with my weight. i tried every diet, and i even had weight loss surgery. but, after complication, i had gained everything back extremely fast. i was unhealthy, miserable and depressed. following golo, and taking release, i was able to lose weight gradually and keep it of

the boj accounts point to what they call the yentervention.ou think that you could use it for other things too? jonathan: what like? lisa: you're going to bring that into the conversation, doing another yentervention? jonathan: i guess it doesn't work, does it. most signs point to yen intervention. lisa: i killed it for you? jonathan: i think it died. this is bloomberg. ♪ hey you, with the small business... ...whoa... you've got all kinds of bright ideas, that your customers need to know about. constant contact makes it easy. with everything from managing your social posts, and events, to email and sms marketing. constant contact delivers all the tools you need to help your business grow. get started today at constantcontact.com constant contact. helping the small stand tall. - after military service, you bring a lot back to civilian life. leadership skills. technical ability. and a drive to serve in new ways. syracuse university's d'aniello institute for veterans and military families has empowered more than 200,000 veterans to serve their co

expectations so watching those clearly as so much of the drive toward wage gains has been pushing the bojrs. weakness in the yen has upheld domestically. worst-performing g10 currency and divergence could gap further. let's bring in michael wilson. the prime minister has been warning against a slide in the yen, excessive moves. where can i go from here? >> i think i keep using the word fundamentals and the other one is excessive, too much of one and not enough of the others. moves have not been excessive, they have not entered the market with good reason. if they dilute the criteria, the market will buy the dip. for me, u.s.-backed drop so solid right now that it merits current levels given the differentials but for now we could see 152 before u.s. cpi on the back of the jobs print on friday. they can job own and raise intensity of the language, but they have played one of their aces and we have to defend a level, which never works out well for central banks. i think it is going to be a gradual grind even when we had a little bit of a shakeout, power driven or whatever, maintaining three

a couple of currencies in asia, you've got the boj pledging to weaken the currency.aying fx regulators will you're probably not easily persuaded to switch mobile providers for your business. but what if we told you it's possible that comcast business mobile can save you up to 75% a year on your wireless bill versus the big three carriers? you can get two unlimited lines for just $30 each a month. all on the most reliable 5g mobile network—nationwide. wireless that works for you. for a limited time, ask how to save up to $830 off an eligible 5g phone when you switch to comcast business mobile. don't wait! call, click or visit an xfinity store today. it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. paul: let's take a look at tesla shares. 12% will make for an interesting open, what the earnings call. we were expecting a ratcheted quarter but it was all about the outlook. let's ge

fact, a resolution was drawn up in the government, and finally, in fact, the resolution was issued in boj. it was announced that in article 8 of the dosh note , it is explicitly stated that this is the discussion of the explanation of the drug through internet vinegars. i read from the method that the name of the regulation is the scientific vice-chancellor of technologist, the name of the regulation is, in fact, the regulation of supporting the production of knowledge -based and job-creating knowledge. in the field of health, it means specifically that the title is knowledge-based discussion , because almost most of the sek that we are talking about are actually equipped with this feature of being knowledge-based and based on modern technology and knowledge, and they are subject to it. rou says that this is the government's approval, the vice president's science and technology office, in cooperation with the ministry of communications, is obliged to to operationalize the field of drug distribution through sakas or internet platforms in compliance with the principle of competition and pre