the other difficulty for governor kuroda is, what more can he do?up with the ecb, because the ecb is easing, but draghi announcing easing sent the euro dropping. there is a lot of danger today too blase ant explanation from kuroda or he indicates this could pass, the yen could tick up because the expert nations for endless -- expectations for endless easing's are so priced in that unless you can offer something new, the yen major backup. this is the question i asked after -- kathleen. what do markets think about this? is the markets viewed, garfield? garfield: it is hard to find a market around the world that isn't skewed by central-bank action. i include the u.s. and that. japan seems to be infected by this slow, creeping paralysis. there was a lot of optimism when inflation was picking up and that has come back down. a lot of it is up to abe and his government and japan inc. kuroda has laid the foundations, built palace for japanese inflation but it can only come if companies are going to boost wages. as we look at the charts kathleen was showing

look for the possible tone from kuroda on exit strategy. we have china property data out later this afternoon. holding onto those losses. kiwi.for the bitcoin stemming the bleeding. perhaps a sign this 18% plunge may be off. take a look at your bond markets. that rally in bonds seems to be underway. the u.s. tenure at 394. flattening at 24 basis points. yields ticking lower overall. france back into negative territory after the dovish ecb meeting. no trading in singapore, malaysia, indonesia, or the philippines. ramy: from mildly hawkish fed to qe exit.ly dovish mario draghi announced the plan to wind down its bond purchase program. yet ec move was expected, unexpected at the same time. >> leave it to mario draghi. we all knew he would say something about the bond taper. when he announced all the announce- would he all the details, weight until july? first of all, we know that they were going to start tapering bond purchases after september. no rate increase. he said until the middle of 2019. he said this tapering will be contingent on inco

powell, draghi and kuroda.is "real yield." ♪ ♪ jonathan: i'm jonathan ferro, this is bloomberg "real yield." it is time now for the final spread, over the next week, another round of data on u.s. housing and some central bank decisions from the bank of mexico and brazil. plus, the opec meeting to look ahead to. draghi, kuroda and powell altogether. a lot of stuff you don't want to miss. still with me, colin robertson, andrea di censo, and alan higgins. i want to wrap things up with a conversation i've been having through the week. basically, whether you want leverage loans or exposure to high yields. the debate seems to be either/or. how are you thinking about that debate right now? andrea: really, it comes down to rate sensitivity. that's what were talking about these two asset classes. both of them, more sensitivity, more attractive in a rising rate environment. we think there's value in the bank loan market itself, but i think what we've seen is net issuance on the high side, whereas in high-yield markets, y

we heard a lot from kuroda and mario draghi. matt: that is true. the most interesting speaker was the least powerful central banker, philip lowe had the most fascinating comments and made the stho-pvoking statements and has the third mandate of worrying about the commonwealth, the people of australia, how they are doing behind this price stability and full employment. the most important comments come from jay powell. he says the case for gradual rate increases at the fed is strong. saying the fed is 100 basis points below the neutral real rate of inflation, and estimate, an art and not a science. saying that he thinks this economy can still add more jobs. unemployment, he thinks the u.s. economy can add more jobs.

there is governor kuroda. you see the core cpi. that got down to 0.7%.the first quarter weekend before it will pick up. this is a cool line. it is a nonaccelerating inflation -- inflation rate. go below this, you could push up inflation. look where japan's unemployment is. it is 2.5 percent. that is why people think they will see an acceleration in wages and inflation overtime. bloomberg economics says japan's inflation will top 1% in the third quarter. it is not what they will do but what they say, particularly governor kuroda, a sense of where we go next. ramy: a big week for you and us. kathleen hays, our global we will ask anz's raymond young if the latest inflation numbers out of china will move the dial for the pboc. more central bank action. this is bloomberg. ♪ is is bloomberg. ♪ asia.: this is daybreak i am yvonne man in singapore. in new am ramy inocencio york. china's factory inflation rose faster than expected in may on rising prices for commodities including oil and metals. joining us is the anz banking group economist raymond young. the num

kuroda, the 31st head of the bank of japan my own opinion, to weigh in on this, i think friday is theat mario draghi's course, especially with what's going on with italy, will be tricky the trickiest of all has to be the bank of japan. like any good poker game, where you sit makes a lot of difference terms like check to the highest bidder, meaning mr. kuroda will have much more pressure, if mario draghi even delivers a little bit of what many traders think. he will be the odd central bank out. could it have come at a worst time they just had their first negative quarter over quarter gdp number in several years. i'm not saying that they're economy hasn't improved. they also have a threshold for inflation that seems highly unrealistic. in the very beginning of the crisis era, i remember policies. it's not directed to any particular country it's nice to have a target for inflation. if it's something that isn't ever going to occur within a logical timeframe, does that mean these insane policies will go on forever? you may learn friday if you're looking for the big meeting for volatility,

there is a series of a structural issues which governor kuroda is not in control of. >> when it comesn, you said it could strengthen because of the trade tensions, but will weakenactually we can -- ? simon: if you look at the behavior of key g5 currencies this year, it has actually been based on geopolitical effects rather than on policy divergence. in the medium long-term you would expect the yield spread to drive up, but in the short term, no. anna: thank you so much, simon french from panmure gordon stays with us. ♪ faces off with the french over immigration. we will talk about that next. this is bloomberg. ♪ two, down, back up! our phones are more than just phones. they're pocket-sized personal trainers. last minute gift finders. [phone voice] destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet which could save you $400 or more a year. it's a new kind of network designed to save you money. click, call, or visit a store today. anna: 6:30 a.m. in london andanna: 2:30 p.m. in tokyo. the bank

i think it will be so interesting at the press conference, what kind of explaining governor kuroda has to say about that chart. the words will matter a lot. >> it is weakening and we're seeing further weakening right now in the japanese trading session. now let's get to the first word news with jenna. u.s. economy has become the world's bright spot as china and europe cool. likely to rack up growth of 4% in the current quarter. that is being spurred by solid consumer spending including may retail sales that beat expectations on thursday. imf chief christine lagarde says the treasury secretary steve mnuchin has criticized the u.s. forecast. >> he regards the medium-term outlook as too pessimistic. and frankly, i hope he is right and we are wrong. because that would be good news for the u.s. and it would be good news for the global economy as well. jenna: the world's rich keep getting richer. and they are doing so a lot faster. global personal wealth reached almost 202 trillion dollars last year, up 12% from 2016 and the strongest annual growth in five years. millionaires and billionaire

all of the central bankers, whether jay powell, draghi, kuroda, their main concern at this stage is aboutalating trade tension. there hasn't been any hard data showing at this stage it is already starting to negatively impact economic activity, but they are concerned if things really do deteriorate. it is important to remember these tariffs announced by the u.s. and china -- at this stage, the economic impact is fairly negligible, but it is the threat and the threat of more inward looking trade policy that is a major headwind to the global economic activity. rishaad: absolutely, and if you have a lessening of global economic activity, you have a lessening of trading activity -- fx trading activity. a dollar one which actually gains on the back of it or the other way around? the imf on what higher currencies would mean came to the conclusion it would be dollar supportive because it would filter through higher willtion, meaning the fed probably have to raise rates faster than anticipated. it is also a lower current account deficit for the u.s.. it triggers a little bit of financial tension

governor kuroda said in a press conference after the meeting that the bank is studying how the rate manageddefy a number of factors that point to upward pressure on prices. the boj is keeping its foote o the easing pedal, american and europe peern baan banks are move opposite direction for the time being, the boj has no other choice but to keep the status quo, saying it will maintain it for as long as it is necessary. that's all from the nikkei back to you. >> thank you for that. when the bank of japan do move, it will be a big one we'll have to keep on waiting for them >>> we had a big week as far as central banks are concerned. we had bank of japan, ecb, we had fed. so if you have any views on central bank policies, follow us on twitter, streetsignseurope@cnbc. >>> and more from monaco, where tanya breyer will speak to ignacio, the ceo of hijos d hijos de rivera. . >>> welcome back to the show rolls royce shares are surging after the company maintained its 2018 guidance. the enginemaker acknowledged issues with the trent 1,000 engine could cost 100 million pounds a year. rolls royce says

will be watching out for commentary as we get mario drag hi, governor kuroda and others. take a look at how we are setting up into the asian open. you have kiwi stocks a little bit lower, the kiwi dollar at 69.38. the u.s. dollar is mixed against the g10 peers. futures flat here. still under the $.75 level as we get a roll across commodities. gold seeing a bit up, .25%, and crude trading lower getting i that contentious opec meeting in vienna. looking at the agricultural index, everything from soybeans to copper to call getting -- coal getting impacted by these new trade tariffs first us from washington that retaliatory lists from beijing. now first word news with haslinda amin. haslinda: iran says venezuela and iraq will join it in blocking the saudi-russian led proposal to increase oil oduction with opec and its allies meeting in vienna. has succeededpact in balancing oil markets and lifting crude prices and the biggest producers want a relaxation as soon as next month. russia said opec and its allies may consider 1.5 million barrels a day. largestmains the foreign owne

kuroda in the box. it will. all of this is going on, let's look at data points, shall we first of all, when you look at the markets it they look half fool or you would say none of these are really the reason. i think i would question that. i think it's difficult to ascertain differences of how foreign trade, monetary policy and foreign trade policy are playing in one sure on the latter, everything changed in the markets about 50 or 60 hours ago with mario draghi telling us this is going to be a hot meeting on quantitative easing a week from today. finally, eurozone, they're growth number us i understand when you lump all of the countries together i'm not sure if the information is better or worse. as with the european union growth as evidenced by gdp is up 0.4 for the final read on the quarter, wafd on first quarter versus fourth quarter. that's the slowest month since 2015 the reason i bring that up, it shouldn't be shocking but with the euro going up and rates going up, it shows you what's more important right

governor kuroda she's core prices in a range of 0.5% to 1% down from 1% previously. that pushes japan behind its global peers when the fed raise rates while the ecb plotted the end of bond buying. >> i think it is more of the same from the boj carried they have cut their inflation outlook a bunch of times, one more won't change things a lot. they will keep the 10 year yield at zero, but this highlights the contrast with the fed. the fed said they would do more, the ecb said they would stop their bond purchases this year, so for a country -- a central bank that is raising interest rates as in the u.s., the currency rates should rise and the dollar is rising a whole bunch. for japan, where they have monetary easing and for as long iswe can see, the currency falling and this announcement today will put more downward pressure on the yen. the u.s. is slapping tariffs on $50 billion of chinese imports. china, planning to announce retaliatory measures. >> trump's terrace plan will implement more than $50 billion worth of tariffs on 1300 products. the president said those pr

we will see what governor kuroda says on friday.obal economics and policy editor kathleen hays for that, rounding out our massive week for investors and geopolitics, elbowing each other for headlines. bloomberg users can interact with the chart shown using gtv . there are charts featured on bloomberg television, catch up on key analysis and save the charts. that is almost it. yvonne will be staying on with ramy inocencio for daybreak asia. you have a lot of great guests, continuing our top stories. right, d-oneis before that crucial meeting. one before that crucial meeting. what could happen when trump meets with the premise of singapore? it is a courtesy meeting. that starts to happen at noon. some professors joining us. he talked about the potential downside, seeing kim jong-un throw a curveball and reach out to trump perhaps for an impromptu meeting this monday morning. trump has talked about having someone on one time before this delegation actually meets with north korean leaders. something to watch. we have the harvard ken

harry to kuroda is speaking after the banks rate decision. the boj left policy unchanged. significant he downgrading its assessment of inflation falling behind his global peers. we have seen what is happened with the fed and the ecb. ,oining us now from singapore west goodman. what impact is that going to have? hi. i think it is more of the same from the boj. they have cut their inflation outlook a whole bunch of times so one more is not going to change a lot. they are going to keep the 10 year yield at zero. this highlights the contrast with the fed. to ecb said they are going stop there bond purchases this year. for a country for such a bank raising its rate as in the u.s., the currency should rise. for a country like japan where they have monetary easing and easing insight for as far as we can see, the currency is falling. this announcement today will put more downward pressure on the end. trump is nownt said to approve tariffs on $50 billion of chinese goods. by my count, this is the third time in the last three months he has threatened new tariffs against china. i gue

up up another important set of conversations with mario draghi, powell, kuroda.he markets churning higher today. in washington with the news as well. this is bloomberg. ♪ this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> it is all your fault, the u.s. accuses china and a new 35 page document. market jitters take a break. again, a voten, will determine the path of brexit negotiations. deal or no deal, iran rejects any output compromise and will leave the opec meeting early. oil prices are caught in the middle. david: welcome to "bloomberg daybreak." welcome back. big day tomorrow. opec. >> i am into it. right? questions as to what it will mean for oil prices in ter

he is talking tomorrow on a panel with kuroda. that will be very interesting to see how that plays out. inia: we have only priced two thirds of the hikes the fed is looking to do. how are they ever going to be able to find rates in a potential u.s. slowdown? vince: the ecb will be the hope for the for seeable future. the pricing is and where the fed has it, the market doesn't believe the fed will be able to get as many hikes is they want to down the road. the interesting thing he didn't a 20 plusis that with trillion dollar deficit, the one of the other things that happens in a recession as you ramp-up government spending. we don't have that flexibility with the deficits we have. the fiscal and monetary policy may not be able to respond to a recession which give the fragile recovery he is talking about. intersection the as ours trade is concerned, the consequences of u.s. monetary policy and global monetary policy and trying to restrain that to some degree on em because we are seeing that despite investors thought this would be di

bank of japan, using a left hook on some of those bond traders reducingrnor kuroda some of these bondssamsonite reducing , reaction to that much better than expected. it's all going on. >> it's all going on. we are seeing shanghai stocks , and still down over 6% for the year. ahead of the msci inclusion, investors jumped on the share purchases hitting a record eight and a half $1 billion. -- 8.5 billion. we will also see if foreign funds continue their buying streak with these msci editions. on the rightune foot, rising for a second day and we have the yuan trading in the number six spot. on the tariffs, we want to highlight that china has published their official list of consumer goods that would see tariff cuts. checking in on the sector breakdown for the shanghai,, we do have tech and health care leading the drive so far. it looks like bleeding across segments. thes take a look at breakdown when it comes to specific movers, i want to highlight what is going on with the big stocks, the heavyweights. switching it out to check in on some of the leaders for the we have composite, xenhua

francine: is there anything that kuroda can do?hink so, they have the same problem the eurozone has. many structural factors bearing down on inflation. the pace of shale production is probably going to have a bigger impact than the central bank. i don't believe they believe or has ever believed this forecast for core inflation. it is just hoping it will trend higher. francine: will its? -- it? stephen: well it has stabilized. but when you look at europe's aging population, the impact of technology, relatively weak credit growth. lots of spare capacity in some economies. francine: we are also seeing elections in japan soon. what does that mean for abe and economics? i don't see that any central bank governor, new our current, is going to try a different strategy. i just know that japan's fundamentals are good. the amountlding back of stimulus reduction that they actually believe is required for the economy, given how well it has been performing. i don't necessarily blame them for doing that when you have all this hype about a trade

an ecb event will feature fed chairman jay powell, mario draghi, and kuroda >> wow that came up on youyeah. >> good job. >>> the trade situation with china escalating for the latest let's get to kayla tausche. >> they believe they have more to lose in what they're calling a trade dispute. today we could get more clarity on one piece of the puzzle that's a deal between the white house and zte. today president trump will continue his sales pitch to lawmakers to forgive zte with a fine and board changes but allow it back into business giving the u.s. a bargaining chip in talks with china but many of the dozen plus republicans attending today's meeting still see zte as a national security threat and want to thwart the deal. today the commerce secretary will be on the hot seat on capitol hill this time defending the administration's pursuit of tariffs to protect national security the senate finance chair orrin hatch called after they were investigating auto tariffs "the wall street journal" reports german automakers may propose lowering eu tariffs to avert new u.s. tariffs we'll keep you po