haidi: kathleen hays.ext guest says he is the recent -- feels like a turning point. what is your strategy given we have so many conflicting messages? guest: it's always a challenging time for investors. for us, the clear sign of what the fed -- [indiscernible] the immediate danger is across markets. the fed is engaged in raising rates, tightening policy, that's continue to put pressure on the yield curve. generally speaking, yields are heading higher. haidi: regionally, where are you seeing opportunities? rate deal of uncertainty in terms of how the body of emerging markets reacts as we get the fed tightening the balance sheet, shrinkage, maybe 75 basis points on the table. guest: this cycle is more complex because inflation is so high because normally when you get a fed tightening cycle, the relief valve is emerging markets . that is a more dangerous policy because that has inflation consequences. you're going to have to react to the fed tightening more than they would have previously. they can't rely on

haidi: always great to have you with us.cio at ubs global wealth management as we see oil toys for a monthly decline. how are you seeing the price action when it comes to energy stocks in asia? >> that focus we have gasoline demand. we have losses across the screen, some major energy-related stocks. a chicken i what we are seeing with the tech space because we did have bank of america out with a work and we saw a downturn in the chip sector, we are checking in on some of the major chip production companies and makers. another we are watching, this is jumping in tokyo. to be clear, two of them include my melody, hello kitty is being licensed to alibaba. haidi: [laughter] let's get you to vonnie quinn. vonnie: thank you. the red investor says the fed should act forcefully to her price pressures. she said central banks should not be complacent. she told cnbc the fed is at the beginning of the rate raising process. joe biden has met leaders of south korea and japan. the discussion focused on dealing with north korea. joe biden -

haidi: welcome to daybreak australia. i'm haidi stroud watts >> in sydney. >>we are counting down to asia's major market open. shery: i'm shery ahn. the top stories this hour -- saudi arabia raises oil prices by more than expected. the u.s. may allow more a radiant oil into the market. haidi: president joe biden's commerce chief says it may make sense to -- shery: asian stocks are expected to see a cautious open after the u.s. jobs report. take a look at u.s. futures. this after the s&p 500 lost ground for an eight week in the nine. we continue to resume those losses. we have the nasdaq 100 being dragged down, losing more than one person. it did not help that elon musk came out and said he had super bad feelings about the economy. this report after wti touched $120 a barrel. we are continuing to see that rally in the asian session. not to mention we had the saudi arabia news, raising prices for asia and we are seeing more of a demand rebound given that economies are coming back online and reopening after covid lockdowns. we are seeing treasuries extending th

haidi: welcome to daybreak us earlier. i met the australia summit in sydney. >> we are counting down to asia's shery: major market open. i'm shery ahn. the top stories this hour -- the flash and global growth again -- warning inflation could persist for years. haidi: the s&p because back last week's losses. australian and japanese futures signaling gains. shery: the toshiba ceo says they have not decided whether to go private rest a public as the company considers buyout offers. haidi: plus our exclusive interview with morgan stanley's australia ceo. the bank holds its annual summit right here in sydney. shery: u.s. futures under a little pressure. the s&p 500 rallied to session highs during the last hour of trading. this is an interesting and volatile session because we had it down about 1% but mega caps did lead the gains on the nasdaq 100. a gain of .9%. we had treasuries fluctuating, the 10 year yield falling below that 3% level. some clarity on what's happening , leading declines throughout the session, given the targ

haidi: the u.s.ommittee investigating last year's capital insurrection is said to begin its public hearing. it is expected to place much of the blame on the former president donald trump. let's get details from jodi schneider. what brett -- breadth of evidence, what sort of cases going to be built against donald trump? >> they are fed more than 1000 interviews, more than 140,000 pieces of evidence and now we are at the first hearing. there is a lot of drama, is going to be in prime time, 8:00 p.m., it is just beginning. we are not only going to hear from witnesses, we are going to see video from a videographer who was embedded with the proud boys as they stormed the capital on january 6 2021. we are expecting this to be emotional testimony. we are going to cure from a police officer at the capitol building who was badly hurt that day. there is going to be a lot of very dramatic scenes we are going to see. the committee will make the case that it is something that he did not stood by and watched but p

haidi: we saw u.s. listed chinese stocks rallying for a third day on these new game approvals, may be the official stance is softening. are they almost emerging as a place to hide amid higher inflation in the u.s. garfield: i don't know about a place to hide, but there are not a lot of assets out there that look particularly attractive. in an environment where everything has been beaten down and you are scrambling around for something that can offer you decent returns, often investors will gravitate towards stocks or other assets that have fallen more than most, and that seem potentially to be hitting bottom. china tech stocks tick those boxes very much. they have come down so far, it is hard to see them going too much further, and there's the potential for strong gains if they get back to even where they were a couple months ago. add in also some signs that china may have decided to be a bit softer on the sector, and also the potential for the chinese economy to turn around now that there's some prospe

>> haidi: good morning. wacom -- welcome to daybreak australia. i'm haidi stroud-watts and. shery: i'm shery ahn. president biden reboots effort to counter china's infrastructure initiative after an earlier campaign faltered. the fallout of the u.s. supreme court move to overturn abortion right. a new poll suggests a majority of americans disapprove. u.s. futures across asia after we saw a rebound in the equity market with the s&p 500 gaining more than 3% friday, the best day since may. for the week gains were up more than 6%, the second-best reading this year. the vix is well below the levels we have seen it, past bear market. we are talking a level around 27. we continue to watch the oil space. we are seeing a little pressure in the u.s. session. in the asian session also we are talking about two consecutive back-to-back declines for oil prices since early april. that is to do with concerns about demand disruption given we have continued to see concerns about recession reflected in the treasury space. the 10 year holding around 313. look at this chart. we have seen a rally

haidi: has the china risk receded?e saw the chinese adr's really jumping in the overnight session. we keep talking about inflection points for the chinese economy, for the chinese regulatory outlook. do you feel like we are there? julie: i do not think i can pretend to be super well-informed on the chinese economy, but what i do think is important to note is that going forward, the data out of china is always going to be a little bit messy because we have had this major shutdown, this major impact on supply chains, and manufacturing, and the weakness in the consumer. so i think it is actually going to make it very hard to tell where the economy is going. but i do think generally speaking, the government is very focused on stability and improving the state of the consumer. and so for the long-term investor i think it could be an opportunity. haidi: julie, always great to have you with us. julie biel. you can get a roundup of the stories you need to know at daybreak at dayb . you can customize settings so you just ge

haidi: what happens next?s a unique situation where a country has the ability to pay but is kept from doing so. to quote a sovereign analyst, they never have seen anything quite like it. in his words it's very rare. he thinks it will be a big watershed default. a formal declaration usually comes from ratings firms, but the european union sanctions led to the ratings agencies withdrawing from rating any kind of russian entity. the bondholders will take a wait and see approach. the default largely symbolic, litigation over the loss of hammett's will likely take place for years. as to whether this matters to the russians, the view is no it doesn't. double-digit inflation, the worst economic contraction in years. again, they do not have much respect or regard for this labeling of default. haidi: su keenan the latest. let's get to the movers. evolution mining falling after cutting violence. -- guidance. we are watching an australian biotech company, stomach cancer vaccine. sapporo rising after the acquisition of st

haidi: u.s. stocks slump and treasuries advance as traders weigh his comment the s&p 500 facing it's worst first half since 1970. shery: and dissemination's are weaponizing the rhode economy. u.s. futures under pressure at the open in the asian session, after the s&p 500 finished lower on wall street. we had those gains earlier being. back after chair powell's comments about the reception -- being pared back after chair powell's comments about the recession. alongside materials, we had a double to a double-check closing at the lowest level in the month. we continue to see further pressure around the $104 a barrel level. treasury yields file towards the 3.1% level. we are watching the haven assets. take a look at how gold treated in the previous session. it gained a little bit of ground. the dollar index managed to pare back earlier gains. mixed pressure across different currencies. we are watching risk assets as well. emerging market stocks at the lowest level in a month. bitcoin in the asian ses

haidi: kathleen hays there. we will be watching with much anticipation and it comes to the ecb meeting. oil retaining gains after data shift dropped. gasoline stockpiles as well. u.s. natural gas prices tumbling after a fire broke out in texas. let's get more with julia penn's era. holding above the $122 a barrel level. what is the new outlook? >> it is crazy how much we have rallied recently. if we continue to rally past $123, $124 a barrel, we are going to go to 2008 highs. short-term we are going to see a tight market especially for the summer season where everyone is driving in the northern hemisphere. and the fact that there is a russian oil ban, there are not enough refined products in the market right now so it is tight supply. obviously we know opec is increased their output for the month of july and august but they have not been meeting quotas in the previous month so there is nothing to say they will meet them this month. short-term outlook is it will be tight and painful for consumers. shery: that cou

haidi: a lot of caution. we are hearing from the sites of mohammed -- the likes of mohamed el-erian saying it inflation is not going any worsening. if we get another supersized inflation, does that change how hawkish the fed really is? kathleen: we had already been promised 250 basis point hikes in the rope. governor bullard from the st. louis fed things the 50 basis point hikes could continue through the end of the year -- he thinks they could continue through the end of the year. so what online, the fed once clear and convincing signs that inflation is slowing -- the fed wants clear and convincing signs that inflation is slowing. we may see that core inflation has come down a bit, but the headline is still saying high. those are important numbers to consumers and businesses. the fed has got the door wide open to the 250 basis point rate hikes. importantly too, next week they will update the summary of economic projections. we will get the view of just how aggressive in terms the consensus is. shery: kathlee

haidi: treasury yields and oil climbs. morgan stanley says analysts are sticking to publish earnings estimates and like a deer in the headlights. i cap on russian gas in a bid to limit the profits that moscow makes from its energy exports. labeling china a sustain -- nato labeling china a challenge. kathleen: dear in the headlights, i love that statement from morgan stanley. people are just confused about what is going on and what is happening next. last week was the second-best rally for u.s. equities in all of 2022. today, stocks opened higher at the close, they are lower. computers are moving higher a bit again. -- stocks are moving higher a bit again. people expect more volatility. maybe the worst is over and skeptics say, maybe not. there is an uncertainty here. there was a rise in treasury yields. two options at once. two year notes and five-year. $70 billion, $80 billion. the worst romanticist 2010. -- the worst demand since 2010. a bright spot if you are the oil bubble is that oil futures, the cash market closed tw

haidi: extremely important. this is bloomberg. ♪ haidi: a quick check of the latest headlines.al expenditure by 30% as it sees opportunities. the company says most funds will be for construction. the philippine economy grew at one of the fastest rates in asia in the first quarter, expanding by 8.3%. alibaba has replaced the ceo. he was replaced by a guy who joined in 2018. he is also an advisor and will remain on the board of directors. a breast cancer drug has shown promising results in late stage trials. the drug will extend the lives of patients by about six months. for the first time, women with low levels of a protein are seen to benefit from such a treatment. shery: we are watching the china fx markets, in focus ahead of the opens. we have seen big fluctuations for the yuan this year. reporter: what is key to watch is how this is an indication or how strong or weak the central bank wants the you want, the pboc does not have regular press briefings, we don't know what the policy is. in terms of the yuan want, this is an important week. that could move the currency. any ind

haidi? haidi: still ahead, a straw you is facing its biggest power crash in decades. for the public to conserve gas and electricity supplies. more a little bit later. but first, a chief economist says a perfect storm is making a big pull for policymakers to calibrate plans. we will look at that next. this is bloomberg. ♪ >> the committee decided that a larger increase at the target range was wanted at today's meeting. >> we always felt it was necessary to increase, looking at our inflation forecast, it clearly shows that inflation is now higher. >> if we do see greater evidence that higher inflation is becoming embedded, then, you know, that will be the trigger. >> the calibration of this rate increase will depend on the updated medium-term inflation outlook. >> if we raise the yield ceiling, we would expect to see larger yield drive above 2.5%, and that when weaken the effect of monetary easing, so we are not planning to do anything like that. >> by the end of the year, i would expect inflation to get to 7%. . that is a very high number. >> either a 50 basis point or

haidi: bloomberg su keenan.are less than 30 minutes away from the markets open in japan, korea and asia. we will look at the outlooks of aussie stocks. annabelle: we lost around 16% of the asx 200 of this year. what's interesting in this market is we have seen earnings revisions upwards over the past six months. it seems like over control and commodity inflation is really boosting underlying expectations for company earnings. but when bloomberg intelligence has been going into why we drop in our corresponding with the earnings estimates, what we're finding is that the markets have become more dependent on the direction of the underlying fundamental. we take a look at the chart, this is a weekly consensus p/e ratio. we are seeing a trading at 12.4 times earnings. you compare that, it is below the drop of covid and up around 40% from november of that year. you compare that to what we see for the aussie bond yield. we are around that 4% level up from four point 7% on october 2020. that is positive or earnings of ar

haidi: great to have you with us.have live coverage from the form on central banking in central portugal this week. you will be hearing from economist throughout the event about the monetary tightening and procession concerns. goldman sachs and stanley are doing buyback after clearing the stress test. let us bring in sally bakewell. what do we learn and what are the upshots of this? >> we had a stress test and banks cleared them which was to integrate expected. they passed them last year and the tests were harder this year. they were talking about soaring prices and a huizinga -- housing crisis. about doing buyback. we saw goldman sachs and morgan stanley are at the front of the pack in terms what they would pay in buybacks. one dollar a share by capital requirements which would be interesting because bloomberg intelligence estimates that jp morgan and citigroup may have to have more equity after the federal reserve's test -- stress test. they would invest in the requirements. kathleen: what does this tell us about th

♪ haidi: a very good morning. am haidi in sydney, we are counting down to asia's nature market opens. annabelle: i am annabelle from hong kong. shery: i am shery and in new york. welcome to daybreak asia. our top stories this hour, set to end the week on a high note after equity stop at two day slump in new york. alleviating conflation -- inflation concerns. opec will open oil taps in the coming months as a gesture of reconciliation to the u.s.. president biden reportedly wanted them to sell. the president is set to give a national address on gun control as congress works on bipartisan legislation we will start you off with inflation numbers out of south korea. we are getting the latest gear on your numbers, growth of 5.4% in may, this would be the fastest acceleration or inflation in south korea since 2008 and also this would be the first times that it surpasses the 5% level in 17 years. when it comes to month on month numbers, there is upside growth of 0.7%. take away food prices, floor consumer prices rising 4.

haidi: we are also watching the yen.om the finance minister saying the are watching levels when it comes to yen with some degree of seriousness. this comes on the back of what has been so much weakness and downside momentum. the finance minister saying there watching the impact on the economy and will take action as appropriate and it comes to fx and the greater sense of urgency. what is interesting to me is the fact if you take a look at the correlation weighted index, you are seeing a rebound in the yen. almost as investors rediscovering the yen as a safe haven, which sounds a little crazy given it's really been behaving in the reversal of that over the past few months. but it does look like we may be seeing more demand, particularly when it comes to some yen pairs as well within g10 and within the asian fx space. let's take a look at the other corner of the market that has been so beaten down. belle trying to find a floor when it comes to bitcoin and broader crypto, but it does not seem like we are there yet. annabell

♪ haidi: good morning and welcome to "daybreak: australia." i am haidi stroud-watts in sydney.nnabelle: i am annabelle droulers in hong kong. we are counting down to asia as a major market opens. shery: that evening. from -- good evening. from bloomberg's world headquarters in new york, i am shery ahn. the top stories this hour -- >> jay powell says the u.s. economy is in strong shape and can avert recession. the task is getting tougher. >> the path back to 2% inflation while still retaining a strong labor market, we believe we can do that. there is no guarantee we can do that, it is officially something that will be quite challenging, and i would also say that the events of the last few month have made it significantly more challenging. shery: stops swearing and treasuries rise as bond traders up there bets on the recession, eventually reversing the tightening cycle. u.s. futures are unchanged in the opening session. hard to find any direction in today's trading. the s&p 500, swinging between gains and losses, finishing unchanged. we have a lot to digest, central bank speak,,

haidi: the selloff in u.s.tocks and bonds and testify as investors fear that the fed's approach may lead to inflation. shery: and hong kong's chief executive to bloomberg that a stronger vaccination drive could have prevented covid deaths. >> henry adopted more aggressive measures at the very beginning and protected the elderly better, especially the elderly homes, then perhaps we would have seen a lower number of deaths. shery: u.s. futures are higher at the open of asian session, this after the s&p 500 saw a fifth consecutive session of losses. anxiety ahead of the fed's decision on wednesday. bear market markets traditionally take a longer time to rebound. we are in the fourth beer market in the last 20 years. in the last two, we had to wait 1000 days to recoup the losses. nasdaq did outperform. futures are higher, the likes of oracle and fedex. fedex seeing its best day since 1996, after boosting dividends. the 2-year yield continuing to gain ground. biggest three-day gain since 1987. may ppi numbers, also

haidi: what else will she do after this?e says she wants to focus on length her lean in foundation, an advocate for different women's issues. that was something she wanted to talk about, and she has had some big moments come up in her personal life, too. she is getting married this summer. she's looking forward to having time to kind of live in the way that i think a lot of us get to that when you are coo of a company like facebook, it is such an all-consuming job, i'm not sure historically she has had as much free time for those types of things. she really does make it seem like this is a personal decision for her to spend more time to do family-related things. haidi: kurt wagner there with the latest on mena -- meta. a new managing director has been named for the asf. we have confirmation after reports it would be announced after that four-month international. she joined in 2020 and was promoted through the ranks. we are expecting the current office holder to stay until july 2022. he intends to retire after the transition

haidi: thank you.go>, you can dive into the bloomberg enjoyed the conversation and send instant messages during our show. this is for bloomberg subscribers only. this is bloomberg. ♪ ♪ shery: breaking news out of shanghai -- we are hearing they found no new covid covid cases outside quarantine for june 16. they have added four local cases though and shanghai's expected to conduct mass testing every weekend until the end of july after emerging from the lockdown this month. again, no new covid cases outside quarantine in shanghai. haidi: and we know that lockdown to curb the situation has been weighing on consumer demand and this will be key -- china's number two online retailer expecting consumer spending will take months to recover even after major cities lift covid lockdowns. the ceo says sales have not rebounded in june. virus respect ends, affecting spending behavior. jd retailers still feels confident because of this year's shopping festivals. >> the impact on covid-stricken cities is larger and we

haidi: that fear gauge for u.s. coded markets is flashing red in anticipation of a rate rise shock from the fed. the high-grade credit is at its highest since april of 2020, as a 75 basis point hike garners even more support. we talked about 100 as well. let's cross over to kathleen hays and our mliv strategist, mark rant--filled, joins us as well. kathleen, more high-profile wall street names are jumping on board. i do they gauge the chances that we will see an outside hike? su: i want to quickly comment on the credit spread, something that the fed has to watch closely. stockmarkets can sell off, but liquidity conditions could be a red flag for the fed. in terms of the size of a hike, it has a lot to do with the fact that people are concerned that being behind the curve, losing credibility, they have to do something. in the last 36 hours, the markets see it just three minutes, 275 basis point hikes, another 50 basis point hike. a month ago they saw only 190 basis points. a huge change. that is because inflation num

haidi: head of aipac research.up on daybreak asia, the yen has slipped to a 20 year low against the dollar would take a look at how the bank of japan is becoming increasingly isolated. the aggressive military demand. this is bloomberg. ♪ haidi: take a look at the yen weakening in the morning session. we had the labor cash earnings data. of course, this comes as it slid to that to decade low, against the greenback pressure continued to rise from the widening differentials with the u.s.. from war on where the yen goes from here, let's bring -- from more on where the yen goes from here. we know the interest rate continues to drive this gap. do we expect to see intervention or what comes next for the yen? >> i think it is fair to say that every time the yen hits a new low, against the dollar, talk of intervention inevitably comes into conversations across trading rooms. as you rightly pointed out it is a story of interest rate policy diversion. until that treasure releases, it is always going to be expectations of how

haidi: you are watching daybreak asia. we are counting down to the major market open. >> investors hoping for breathing room. oil is edging up. bitcoin holding $20,000 and some watchers are letting investors bond out. price pressures remain. the fed warning of a new high inflation regime. let's look at the futures individually. s&p 500 and nasdaq pointed a higher, 1.1%. that will be a reprieve for traders next week. we are low liquidity today because it is juneteenth. the ruble, we are 35% stronger. no demand for the u.s. dollar and the ruble is strengthening. it will be interesting to see what the russian economy does to manage that strength. crude down 5% in friday's trading session but now back up above $110 a barrel. >> asian stocks are taking cues from those moves. in the bond space, the 10 year yield moving higher in the first few minutes of trade. we got the results of the review in the yield curve control program and rba saying the disorderly exit from the target on the three year yield could cause damage. we are w

haidi: ellen, great to have you with us.ou can get a round up the stories you need to know to get your day going in today's edition of debris. terminal subscribers can get that at dayb . can get the news on the industries that you care about. this is bloomberg. ♪ shery: here is a quick check of the latest headlines. elon musk has warned his staff it has been a tough quarter as a company struggles with supply chain snags in china. an internal memo was seen by bloomberg. pushing staff to sprint until the finish. tesla is known to deliver many units in the final weeks. oracle jumped in trade after reporting better than expected profit. information technology has not been slowed by inflation. sales increased 5.5% to 11.8% -- a joint venture between paramount global and reliance industries has snatched online streaming rights to the indian premier league crickets. it is a blow to disney's screening ambitions. after a bidding war, disney's secured broadcast rights for tv. each deal is said to be worth up to $3 billion accordin

haidi: the world bank president there.et's get more of those forecasts and bring in our global economics and policy editor kathleen hays with our next guest. kathleen: standing by with this is ayhan kose, the lead author on a world economic outlook report that did have these rather substantial revisions. great to have you here. as we look at stagflation, high inflation, low growth, what does this mean for the asian region? how big a threat is it and why is it such a danger? ayhan: first of all, stagflation problem is a universal problem. in asia as well, you discuss in the previous segment major central banks have been increasing interest rates in some cases larger than what markets have been expecting. you look around the world and we have record high inflation rates in many countries. the inflation rates are multi-decade high and a serious slowdown underway. we've downgraded our growth forecast for 70% of countries this year and we are not expecting much of a rebound next year, so the slow growth will continue especially

haidi: let's get you a check of the business flash headlines.ton management planning to add 500 employees in the next two years despite the selloff. the ceo sees the bear market as an opportunity for expansion. they oversee over $1 trillion in assets. >> we think it is part of a very important part of studying the opportunity set and risk set of 5000 custom ease -- 5000 companies. >> is there off-line sustainability? >> absolutely. >> the world's biggest maker of electric car batteries operating at 410 yuan per share. it represents a discount through wednesday. shery: we are watching that meeting between authorities and south korea and how to respond to the fed rate hike and market volatility. we are hearing from the finance minister, saying that government and be ok will respond with market volatility that south korea will work to prevent the one-sided move. the finance minister saying monetary policy and south korea will focus on price stabilization, repeating what we have heard from the new governor . the finance minister saying they will con

haidi: your inflation hedges are cash commodities.t are you holding in terms of dry powder at the moment for cash, and for commodities, what your preferred exposure? >> about 10% over the year we have been holding for 2020, 2021 it would've been something like 2%. a significant pickup from that point in time. we'll go, we like commodities, so those in when you think about cash versus others, cash is about 4%, so maybe a little bit higher than what we traditionally held, so holding a decent amount. >> great to have you with us, state street global advisors chief macro strategist. guggenheim cios says the fed is running out -- is running out of time when it comes to five-year inflation. he told bloomberg surveillance it's possible the u.s. is already in recession and cracks are appearing in the credit world. >> we haven't seen anything like this where we have an inflation problem that we are fighting and , the big difference i think between greece been -- greenspan and us today, greenspan was in the era of opportunistic disinflation. we

haidi: let's get to world and markets. bitcoins latest rebound has a lot of trauma in this market given the selloff. >> that is right. i think what is worrying at the moment is until now, what you saw is short-term speculators selling out as cryptocurrencies, digital currencies stumbled. now you are starting to see some evidence that perhaps some of those long-term investors are also bailing out and that is according to data, they look at a measure that tracks profit realized from market activity on the blockchain. what that is showing is some of these long-term owners are getting cold feet given the route we are seeing in the space and they are bailing out. this is a market known for its devotees. these are investors that were hanging in there regard this of how steep the declines were. now this ratio is suggesting that we are seeing some of these long-term investors opting to sell. this is because of interest rates going up, but also some cracks in the crypto space. shery: when we follow the headlines on bitcoin, we watc

haidi: hong kong marking 25 years of chinese rule. on the changes in the city not just over the past 25 years but even the last five years, which is when xi jinping last visited the city. he speaks about this idea of a rebirth, a rising from the ashes. we know hong kong has endured all the challenges of the pandemic, the lockdowns, quarantine restrictions are still under play, but a lot of historical economic challenges. the widening poverty gap, wealth inequality, the concerns over the political crackdown, the freedom of information issues, all really issues for the new leader john li to contend with. his inauguration is later on today. it is a momentous day but there are so many questions as to what this magnificent city will look like in the years to come. shery: especially as we continue to see very stringent order restrictions with local covid cases not topping 2000 a day -- now topping 2000 a day. stephen engle is standing by with our next guest. stephen: yes, of course it will be a full. day of coverage here. harborside here in

haidi: some influential voices speaking to us about the u.s. economy.his is the picture when it comes to the u.s. futures trading. the upside looking to extend those gains. u.s. stocks holding after a two-day losing streak. traders and market sentiment bouncing between those who see a recession and others who see a fed pause. we have asian stocks set to poison ahead of the key u.s. jobs report. our next guest says the markets need wartime, more data to anchor for the new normal. she also says the fed has zero influence when it comes to the bottlenecks between china and russia. you say investors should go away , enjoy their summer and come back when we have more data. where i'm matt, we had a long cold winter. -- where i am at, it will be nice to enjoy that and come back after labor day. we need a lot more data for the fed to decide in december two raised by 0.25 or 0.5. what you saw today was related to the fed was out there talking about looking at a leveling into the fall if you will. not necessarily pulling back but not drawing 75 basis point increas

haidi: oil markets first monthly decline since november as opec-plus completed the return of output itd during the pandemic. when it comes to the opec meeting, it was pretty much a rubberstamp decision for that. what do we expect from here on given the uncertainty that we are seeing across the price action? >> that's exactly right, rubberstamp. we knew what was coming going into this meeting. to be fair, it is significant because with this ratification, it does complete the return of supplies that were halted during the pandemic. it is mostly symbolic. most members besides the saudi's don't have capacity to bring back online. even saudi arabia doesn't have that much capacity to bring on. they did defer this meeting any discussion of what will happen after august. i think we have to stay tuned. i asked think we need to see if joe biden in the u.s., his visit in july has any impact. he said today he is not planning to ask saudi arabia specifically for an oil race, but he will ask the region. i think we need to see if that july 16 trip pans out. >> what are bilateral relations looking lik

haidi, australia is looking to a 2% selloff. >> it is all about theboj given we have other central banks out of the way. even the swiss national bank. it is creating this confluence effect when it comes to the boj. widening pressure when it comes to the yield differential and the stark difference when it comes to ratesetting. take a look at dollar/yen. we sought relief earlier across just about every other asset. when it comes to dollar/yen trading, still superhigh. shery, we talked earlier about the time where governor corrado was known for trademark policy decisions at this. there is still a possibility the governor could surprise us. >> remember you that have -- remember the halloween treat we covered years back. we are excited about this boj meeting. it feels different, especially when you see how the japanese yen has been moving. analysts say they will not do anything, it is too early, but you are seen currency options traders factoring in a whole different scenario. you saw the swiss national bank first rate hike in 15 years and the boe fifth consecutive move in rate hikes when inf

haidi: