of course, the weaker yen was one of the tenants of abe-no mics, but what does kuroda make of it?een: that is what is so important now. we just saw the dollar not quite to 1.2, but i think that is a level people have gotten very nervous about, and the speed, look at the timing of this -- it has been recently moving so quickly. this could have a lot to do with the fed making clear they are going to hike rates, so why wouldn't the dollar strengthened and the yen we can, for as much of a haven as it has been recently? one of kuroda's critics says right now, this week yen is becoming unpopular with the japanese people. it makes things more costly for them. he says it will erode their quality of life. he says the bank of japan staff might not agree with governor kuroda on this, that there should not be steps taken of some kind. he also thinks that governor kuroda is going to stick with this idea that you don't see wages rising along with this rising inflation, you don't really have to worry about inflation. it is going to come back down, but i think what people are looking for is did g

governor kuroda speaking, saying that essentially he does not think markets have lost faith in the yen, even though it is trading at six-year lows. they say the right is behind -- great is behind the weak yen and it is key for monetary policy, also talking about rising rates are behind the year differential i guess we are being some strength in the yen after a six-year low you have the dollar down by 31% and the euro flat against the yen. it will be interesting to watch the also trillion yen -- australian yen, but we've had the yen fall to a seven-year low against the aussie, so some unwinding in that position. when we looked at these levels of the yen, what is next? you had albert edwards from socgen saying the next level would be 1.50, a level we have not seen since 1990. let's look broadly at asian markets today, a risk-on session, looking for another session of gains here, as singapore is a frontrunner on the reopening theme, austria looking good, and the nikkei up, movement coming through in commodities, iron ore up 2.4%. >> yeah, let's look at the latest coming out of president b

a couple of lines coming across the bloomberg terminal on kuroda.overnor of the bank of japan saying he will not hesitate to add easing if needed. uncertainties are extremely high due to the war. i know there's another couple of lines, i leave those to you, but will not hesitate to add to easing. this just shows you how central banks are diverging. dani: exactly, and that is having an impact on the u.s. currency. they are likely to seek cpi -- likely to see cpi. the yen against the dollar continues to trade at a 2016 high. all about those yield differentials. and by six year high, i mean low. manus: dollar higher, yen lower. people are saying on a technical level you're going to retest the 2018 level. it may affect the economy. the economy is picking up to trend overall. bloomberg customers, hop on their. -- on there. that is the line. they are not going to hesitate to deliver more assistance if it is needed. there is the trajectory of dollar-yen. dollar higher, yen lower. the day after the bond market indicator flashed concern about the economy, it

does it have kuroda's name written all over it? >> it does.its core, this is about the bank of japan's continued absolute categorical insistence they will not raise rates. we are used to central bankers tipping themselves a tiny bit of wiggle room. in his remarks this year, kuroda has done none of that, and very categorical. as people talk about the federal reserve being more hawkish, and they see the bank of japan flatlining, that is a sell for the yen. dani: the boj says there is no way they will move from ultracheap money. do we take the boj literally? >> i think we should take them seriously but not necessarily literally. the reason i say that, we have another six weeks before the next boj policy meeting. a lot can happen in six weeks. i am not predicting an intro meeting move, but kuroda through his history, when he succeeded at the finance ministry, he was a guy who believes in the value of surprises. in 2016 he was interviewed by bloomberg tv in davos. there would be no negative interest rates -- what it do the next week? interest rates

kuroda stepped in. you can interpret that different ways. i want to get to larry summers. you have seen nothing yet. this is what he says. we need a clear signal. they are prepared to accept some slowdown in economic activity. otherwise we are going to make the mistake of the 1970's. that will ultimately create a need for a really catastrophic recession. i put it to you the market is nowhere near the state he says we need. francine: larry summers has been the outlier saying there is inflation, it is sticky, the fed is going to have to do something about it. he was not listened to for the last 12 months and suddenly he is at the forefront of this debate. when he talks, especially now that he called it right, people listen. it also goes to what we were talking about, the fed has to decide whether to do a 50 basis point hike just to show they mean business or whether they do this gradual 25 basis points. we had a conversation with the federal reserve bank of chicago president charles evans. he is not a voting member of the fed open committee but he says he is comfortable with

ken governor kuroda finally have his victor -- cannot governor kuroda have his victory lap?athleen: let's remember how this happens because three days. monday, they announced they would do these bond operations. the first day did not have much impact. they can keep it at 0.25%. we will see. the next day, the move had more impact. they came in an hour and a half early, they had a longer tenor of bonds and purchases. then it was the last day, thursday, where they seemed to turn things around. they came in with more bond buying on top of what they had already announced, and extraordinary slight. that is when you saw them come down. it is around 0.1 9% and change as the trading day gets ready to begin today. also on thursday, the meeting between governor kuroda and prime minister kishida. that made people think, this is serious. meeting the head of the -- the top currency official who works at the ministry of finance met with his u.s. counterpart in the middle of the week. all of these things added up. the government is serious about those, particularly because they don't want t

governor kuroda try to step in to give support, i don't know how short-lived that will be. but he stepped in to cap that 10-year yield. for the moment, they don't want to touch policy. i don't know how long that can last. manus: back in 1994, i actually remember when the bond market unfurled, and the biggest issue becomes you have written a lot of strategies around margin calls, and you have got to meet thousand i think that is the next issue. but they are talking about a softer hard landing, or as it has been said, a semi-hard landing. what is that in terms of growth and recession risk? the growth recession. larry loves a recession, and it's skating on ice according to diane swonk, the issue is how to temper inflation without throwing the proverbial baby out with the bathwater? manus: francine: we could talk about the bond rout until the cows come home. but if we look at bitcoin, we don't 100% understand what purpose it feels, is it inflation protected. it's incredible to see the catalysts that we have seen. it has broken past $45,000, it could be a catalyst to further gai

we heard from governor kuroda and how that compares with what the fed is doing. that is your cross asset. i don't know whether we are looking at some of the other things. tom: the boj, that rate differential really playing out when it comes to the yen. that demand as well. and the necessity for japan to continue to import commodities. significant further downside for the japanese currency. watching any moves from the boj. the inflationary picture is very different and japan to the picture we see in the u.s. europe, will continue to watch the geopolitics. president biden visiting poland later today. in terms of how things are breaking across asset, futures stateside, after a solid day of earnings and gains yesterday in the u.s., led by nvidia, the tech sector, semi conductors has positioned the u.s. for a solid start. u.s. 10 year at 2.35, so coming off the highs we have seen the last few days. that bond selloff as a theme, many would argue, will continue. that is the debate within and among investors. brent to lower by 1.3% -- brent lower by 1.3%. francine: this

. >> kuroda says the incree of pricing will hurt the budget.ank's policymakers said another factor that's clouding the outlook of the economy is the conflict in ukraine. there is a lot of uncertainty how it will impact financial markets and commodity prices. >>> consumers in japan are starting to feel the pinch of inflation more acutely. key measure of prices and roads for the six straight months as people are paying more for gasoline and electricity. the internal affairs ministry says the consumer price index was up, 0.6% from a year ago in february, the gain excludes fresh food, overall energy prices surge more than 20%. that's the biggest jump in 41 years and is not fully facred in the impact of russia's invasion of ukraine. gasoline was up 22% and kerosene of 33%. food prices rose by 2.8%. groceries count for a large portion of spending by households. >>> russia is under growing pressure to meet its debt obligation, this is while facing crushing western sanctions. moscow was running up against the deadline but finance ministry official say

and anything in between, because people are looking for governor kuroda, the yen has gone too much. august high was a multiple year high. anyone in that range will watch. if it goes above 125.28, you're going back to the highest since 2002. juliette: bloomberg's fx and rates strategist david finnerty with us. turning to bitcoin, it has erased its losses for the year after a stealth rally. prices for the largest digital asset has been stuck in a tight race. let's bring in our cross asset editor joanna ossinger. what is significant about what we saw in the movement today? joanna: this really does look like a breakout this time. as you say, it has been in a tight range basically all year so far. and now it is going above that 45,000 level, and it has gotten almost a 45,000 -- 48,000. some said there could be a gap in that range and it would move quicker. it has. no 50,000 is the level everyone is looking at. once bitcoin starts to get momentum, it is a momentum asset. when it goes this far above its 50 day moving average, it tends to do extremely well in the three month, six month year

we had kuroda meeting with key cheetah -- with kishida indicating that policy from the boj is not something that is reflected in the fx market. china's csi 300 having its best day in weeks. a pullback on regulatory concerns and we have the aussie 10 year yield dropping to almost 10 basis points. quite a few sweeteners. dani: that is juliette saly giving us the latest on asia markets. at 10:00 am u.k. time we are going to have the latest data on euro area consumer confidence as well as unemployment figures. then we are going to have the crude oil inventory report. 1:00 pm is german cpi data and then we will have the latest u.s. gdp figures released at 1:30 p.m. at 3:00 p.m. in the u.k. boris johnson will appear before parliament's liaison committee where he is expected to be questioned on the war in ukraine. later week at richmond fed president thomas parkin speaking at the conference on investing in rural america. coming up, whether the two is and tends is a reliable signal of downturn. and sanctions against russian billionaires meant to cripple the ability to wage war, but not all of the c

we are hearing from governor kuroda, saying the bank of japan will continue with life scale using.id they can't see japan achieving this stable inflation target. that is what everyone in the market agrees with. they will be sitting tight on policy contrast. the fed has begun to hike. we are commencing the outlier status. that will be something we will be watching. >> absolutely. sitting tight there. we will be talking to the finance ministers of indonesia and the philippines as they fight inflation. that will be coming up ahead, this is bloomberg. ♪ >> with the fed wrapping up against the battle against inflation, central bankers in asia are readying their own fight against higher prices. carla dominguez spoke exclusively with haslinda amin at the bloomberg business summit. >> it will affect the consumption recovery. this needs to be responded to and anticipated. this has not been transmitted in consumer price by the government. some of it is also explaining this stable food price. in the past two years, it has been -- we have been very fortunate. this is creating a buffer for us.

also governor kuroda has been weighing in, talking about foreign-exchange stability as being importantke a two we head into the brick, just paring some of the losses. the yen is just taking back some of the games it had had on the dollar, the dollar is up zero point 1% against its japanese counterparts. haslinda: that's right, keep it with the bank of japan and its follow-through of the final day of its historic purchase plan. for more, of a senior reporter for fx, ruth. we are on the final day of this unprecedented boj market intervention. give us a sense of how successful the bond buying operation has been. ruth: it has been the story of the week, of central banks versus markets and who will come out on top. the boj managed to wrestle the interest rate lower on wednesday. so we are seeing the 10-year yields at about 0.2%. 30 year yields at 10 basis points as well. so it is working for the moment. however, and that is a big however, with the school year coming to an end, traders will be looking at the boj's buying plans through june and it will be parsing through that for clues as to

kuroda and the boj are not. that is becoming very very clear. i wonder what you make of the moves overnight to drain jgb? kristine: i think the fact that they felt compelled to ask twice -- to act twice today to cap those bond yields tells you all you need to know about how the boj ultimately moves. the boj has proven time and again it is a central bank that really does not like any markets moving much faster than it is comfortable with, and they have proven time and again they will act against any of those rapid moves. that is what we saw today. more importantly, i think it is really traders turning their sites to the boj on the more dovish end of the central bank sector that we have seen and really daring them to finally get on that normalization train. guy: the other question that occurs to me is clearly there's a carry trade involved in what is happening. carry trades normally work in low volatility environments. how risky is this to put on? kristine: very risky because given the broader environment, you usually think of emerging markets as

kuroda, the bank of japan governor is now talking about what are the risks around a 1998 style default it all really is and the price? that is what we need to ask. we could be looking at a further 20% drop according to some of the analytics in that case. keep an eye on the commodity box. dani: i love how camille almond from ubs described this. we are moving from something community -- commodity driven to something with growth implications. credit spreads widening as well. let's get to the first word news. >> u.k. lawmakers have voted in favor of measures to toughen government powers and speed up sanctions against russia's tycoons. the economic crime bill looks set to become law after it was rushed through the house of commons. it would prevent hiding behind shell companies. a new study warns even a mild case of covid-19 can damage the brain and effect thinking. oxford university researchers found covid linked to brain damage months after infections including in the recent -- qantas has flagged a period of higher airfares to combat rising fuel costs as russia's invasion of ukraine sends

kathleen: i think that the sense is it is going to it a lot more than this to get governor kuroda tos dance. he said it after the last boj meeting. not going to start removing stimulus even if inflation jumps and only because other central banks are raising rates. the fed getting ready to raise rates aggressively. that is why we are seeing these moves that were in play already getting more extreme. let's take a look at the yen. down 7% in march. it fell to nearly a seven-year low overnight or yesterday of 125.09. this long-term trend, it has been in place since 1990. technically that is the kind of signal a lot of traders would say butter keep selling yen. what is the boj do? they bought them in the morning session and people did not stop selling. they had to come in later in the day, early afternoon tokyo time. they did come in with a second intervention and it did happen when the 10 year jgb yield was a 0.245 percent -- was at 0.245% . we see the jgb coming back down a bit. even though the jgb is not saying anything, bloomberg economics points out they are concerned about the decli

kuroda, i wonder if he is ready to step in. the last time the bank of japan stepped into this market, you are seeing a reassertion on the upside in the global yield narrative. you are seeing dollar ruble trait again. one of the biggest drops on the ruble, down by nearly 6%. the ruble is going to be back in focus as well. we keep an eye on the oil markets. what will the news flow be in terms of winning russia off russia oil dependent? just and miniature state of flux. francine: fluid. on ruble, the fact that the russian president pushed on with his plans to demand that they use it for -- the ruble for natural gas purchases, there is worry they won't repay some of the corporate bonds. stocks in asia struggling back from some of the early lows. oil turning lower. if you look at some of the european future contracts, they are pointing to a higher start. it could turn very quickly, manus. manus: ok, let's get to our reporters. they are standing by for us. maria tadeo standing by. what will biden's message be? aggi on the poland, ukr

we will go to yen in a second because of the comments from governor kuroda. let's also check out would futures over in the u.s. are doing. it is incredible what the mood has been like this week in terms of markets taking in their stride what jay powell was trying to tell them about their future progress for hikes. you can see when you look at yen, one hundred 18.86. the yen sliding to its weakest point versus the dollar in six years after the bank of japan stuck with its bullish policy stance. sorry, it's dovish policy stance. the lme nickel now dropping by its exchange limit for the third day. this is the story of nickel. we will look at the fluctuations, but there is a problem with credibility. at some point, we will have a full round up about what this means for some of the safeguards. it has been one of the most incredible stories in this space for the last couple of years. yesterday it traded for about three minutes before it got halted. reaching that limit downward. we start with the war in ukraine. president biden set to tell xi jinping that the u.s. w

divergence between the fed, the boe, even the ecb sounding more hawkish, and the bank of japan, where kuroda says absolutely no reason to hike interest rates at this point, even as they are potentially looking at 2% inflation as soon as next month. jonathan: the main story for us is in the yield curve. if you compare twos and tens, the lowest since march 2020. this curve is getting flatter, and pockets of it inverting. joining us is patrick armstrong, chief and desmet officer at plurimi wealth -- chief investment officer at plurimi wealth. are you comfortable being long the s&p 500 as this yield curve inversion starts to develop? patrick: i think you can do better than the s&p 500. i don't think this is a time to be passive. we've got a clear change in the macroenvironment, where we have gone from a goldilocks environment where everything was taking long, but inflation was not provoking the fed. now we see growth slowing and the fed is moving to hiking rates, so the goal is for 50 basis points at the next meeting and may be 50 basis points for the next few meetings. i am not averse to owning

governor kuroda wants no part of it.he message from the boj is follow your other central bank friends are jumping off the bridge, you don't have to go, too. they see no reason to raise rates even as cpi could reach 2.8% in april. the commentary on the yen also really interesting. saying sometimes it could be a positive if the yen is weaker, but it is more about dollar strength at this point then yen week this -- yen weakness. jonathan: let's get some single names and say good morning to romaine. romaine: keeping an eye on the rally we've had over the past four days, the idea is whether that is going to continue on this friday and into next week. we should point out that on a weekly basis, all of the stocks in the nasdaq 100 are higher, headed towards weekly gains, but a lot of the names that led us to where we are today are softer here in the premarket. that includes apple, down about 0.6%. a lot of the big cap tech stocks either flat to slightly lower in the premarket, as a lot of people still have their eyes on ukraine

andrea kuroda says she's fighting back so that women won't have their dreams derailed just because they had kids. >> mothers can also be beauty queens. we can be leaders. we can be humanitarians and we can and do make a positive impact in the lives of others. thank you. >> also at today's news conference was the former miss ukraine. she says she was stripped of that 2018 title because she had a baby. we'll move on now to talk about our weather forecast as we take a live look outside across the golden gate bridge on this wednesday. nice and warm out there today. our meteorologist mabrisa rodriguez is here are details now on some fire weather concerns. look at the calendar. it's march, but i guess fire season just all year round now. yes, specially because we have the 2 driest wet season months on record within the last 130 years. >> happened this last january and february, as you know, we well below average rain specifically the month of february one. it should be our wettest month of the wet season. and last we saw a weak storm that did bring us of severe weather for parts of the north

governor kuroda only has about another year left in his term. so does becoming a much more pertinent question. who they are choosing now and what they are trying to signal. people in the past have said we will get this big backing away from this extraordinary stimulus that was a hallmark of abe and koroda when that changes made. it is a year now but then it will be six months and then three months and that will you be up -- and then it will be upon us. haslinda: the ruble front and center. how much worse can the ruble selloff get? simon: about 5% to 10% from the current price of about 105 against the dollar. we've already reached the max deval lows we saw during the crimea crisis during 2014. adding a little bit on there, given what kathleen noted about the lack of usability of reserves. in 2014, 2015, they ran down reserves by more than $100 billion u.s. they almost certainly do not have that much liquid reserves available to defend the currency at this time. but of course this conflict is much more severe. there should be some further downside

it's not like the old days when kuroda would say, this helps our exports. david: it's interesting.k at last week when the bank of japan had its meeting, the comments from proto were like, yen weakness is ok as long as it's in line with fundamentals. what is fundamentals? that can be vaguely interpreted. the key thing is the speed of the decline. the beginning of this month, it was trading under 115. what you could see is that this has become too one-sided, too volatile. they won't wanted to we cannot to -- we can at two fast of apace. they will want to try to control the pace. you could expect verbal intervention from the government or from the bank of japan. kathleen: sounds like the olden days. new have to step in and do or say something. david finnerty. let's get a quick check of the latest business flash headlines. interest from industry players including china's midea group and u.s. giant otis. other likely bidders include cohen. we are told the elevator business could catch about $4 billion in a sale. a 40% jump in fourth-quarter profits, beating s debates. sales increased 21

governor kuroda thinks that the weaker yen is still a positive for the economy.d do bond buying to get yields under control, we could see further weakness. we are seeing pullback when it comes to the aussie as well. kathleen: we are joined now by our senior fx rates reporter ruth carson. this yen story, i feel like i'm back in the 80's, 90's. we haven't seen anything like this -- it's not bad that -- that bad yet. what is the boj going to do? it's an exciting market story. ruth: absolutely. all eyes on the yen regardless of where you are in the currency train. we are talking 6% down against the dollar. it's only march. a couple things that are really driving it, the dovish boj. a time when everyone from the fed to the rba is looking to raise interest rates. the war in ukraine is driving up inflation risk everywhere. the boj still saying, no, we like our monetary policy. how low can the yen go? you were talking about it earlier. soft and is saying that 20% lower from here against the dollar could well happen. it sounds extreme. it shows you how bearish people are

and then after the last meeting, when governor kuroda's made it clear, he might out of his way to saystimulus. it is still needed even if inflation jumps. just because the other central banks are, like the federal reserve. look what happened. this move in the yen, it is down 7% this month alone. they had that seven year low of 125.09. dollar-yen rate. it is breaking this long-term trend line that goes back to the 1990's. that is a very powerful signal for a lot of tradeers. that is one of the things of the boj is up against as they do bond purchases. what is going on there? well, they waited. last friday in asia, in japan, around the world, people are saying the yield is up to 0.23. the cap 0.25. yes, they're going to move. in fact, they waited yesterday, the first operation did not do anything, so they came in again around 1:00 in the afternoon in tokyo. when it the yield was at 0.245 percent, it's like they waited boom and then it did push it back down. it is backed up today. and bloomberg economics very importantly is saying what this shows, even if they are not saying anything yet

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