that's what governor kuroda keep saying. commodity prices, tequila the energy prices, food prices as well. that is not like seeing inflation expectations rising, so the businesses have to raise people's wages. that's what he's waiting to see. he's worried about the economy. he thinks that banks, small businesses still need the negative key rate and that in terms of financing japan's big budget deficit. they need to keep the great low. we don't expect anything there. we are looking to see how much they raise their inflation forecasts and how much they cut their growth forecast and what kind of questions he gets, speaking to your point, about the yen at the press conference after the meeting. that will be big news. we go to bank and then he should, and we know that he told bloomberg television just in the last week or so that -- essentially what he said is he's not ready to raise rates unless he has to. these looking at supply chain pressures. inflation has started to rise and indonesia. we did there he six economists that are

the boj, kuroda, it appears he has been sticking to his guns for some time.nnabelle: we have seen ultralow rates in japan for the past two decades or so. today, policy settings on hold, still in negative territory, -.1%. the question is, what will happen early next year? focusing on two key players. the deputy governor and an incumbent. both of these people have different policy approaches and track records. citibank has been looking at what would force them to change policies. could we see significant moves? on the macroeconomic scale they are saying that basically they will be forced to stay on hold. for quite some time to come. shery: the ecb could see the first hike in more than a decade. that's pretty high-stakes. annabelle: yeah. you can see as well in the trading market, fx is looking jittery. you have the cost of covering moves in currency. that has been surging. overnight implied volatility is spiking 25%. these are levels we have not seen since 2016. now, what is at play here is two big factors. an expected hike of 25 basis points by the ecb. earlie

kuroda is clearly sticking to his position.hink if you look at the headline inflation figures, you can understand how he comes to that conclusion as we have seen over the past few months, inflation in japan is mainly led by those energy and food and commodity costs. i what the government has decided to do is to focus on making handouts and so on and a fiscal policy that can help people who were hurt by that and helps more people that were hurt by that rather than change monetary policy, which risks a much bigger hit for what the government is saying to small businesses and to homeowners who might not be able to cope with the higher interest payment. haidi: what are they thinking is -- shery: what are they thinking is the plan forward? not to mention global growth almost slowing down. >> those are the two sort of clashing risks that everyone is seeing coming down the road. but i think -- i mean, we are looking at the news on the food front. we are seeing that there is good news about wheat exports from ukraine. the market stabil

we heard from the boj deputy chief whose largely expected to be a favorite to take over governor kurodang he expects stronger wage growth despite what we know is being will rages -- we'll -- real wages falling. shery: will he change that abenomics, that really easy monetary policy that we see from the boj and government kuroda going into next year? that's the question. we are looking at futures at the moment, pointing higher, at least when it comes to s&p many futures and also tech companies soaring after hours after we had those stronger-than-expected results coming from apple, also amazon. apple narrowly top -- tossing estimates. amazon jumping second quarter sales, topping estimates on third quarter revenue outlook, which of course gives you an indication for half the consumers that are still little bit resilient, despite second-quarter gdp numbers contracting again. haidi: at least when you look at people that shop amazon versus walmart, we are looking at that broader sentiment passing through to the final trading session. chicago nikkei futures up by three tents of a percent. we ar

we had governor kuroda saying he is willing to ease policy more if needed.an the dollar-yen go? ray: the last time i was here, a week or two ago after the boj meeting, i said i didn't think we were heading up to 140 in short order. that was two weeks ago. the combination of mr. kuroda saying that if we are going to go anywhere on policy, either in terms of the cash rate or the ycc policy, we are going to be easing policy. then we have seen the treasury yields after friday's rise of extending those gains in the tokyo market. that is a pretty heavy combination. it is hard to rule out the risk-averse moving up to 140. still think the boj doesn't have a concern about levels here, it is about the speed of move. but for the moment, having thought that a correction was due, treasury yields are headed higher. the ycc is locked in for the indefinite future. other than the context of a really, really risk-off move from here, that brings the yen to a safe haven territory, it is going to be hard to fight this stronger dollar trend at the moment. haslinda: the risk-off t

kuroda seems comfortable with the extent of inflation and yen weakness we have seen so far. get a 5% move in a few days, the boj will try to intervene. i don't think it's a yield curve story. dani: thanks so much for joining us. i hope the stars aligned sometime soon and both you and manus are in london. that is erik nelson, macro strategist at wells fargo. manus: coming up, right camera, wrong camera? that camera there. germany seeks deals on lng supplies. producers are pledging to build more terminals. more on the energy crisis in europe right here on bloomberg. ♪ ♪ >> the natural gas supply situation is serious and it is likely going to get worse. to create a buffer for heating season, to heat our houses, to place this buffer, we have introduced a publication to reduce storage. this filling operation is ongoing. it is already higher than 60% right now. dani: the eu's energy commissioner speaking to bloomberg. manus: let's stay with the energy story. germany has been discussing the details on lng supply with producers. the pledge, to build the more important terminals. off

the boj governor changing hands, kuroda stepping down. the boj decision coming up tomorrow. take a look at the results we're getting from the individual firms. much greater upside, 31,000 for the nikkei. broadly, taking a look where we stand. we are staying risk on. nikkei futures coming online, 1.7% upside. we are continuing to see gains for the asx 200, new zealand online, 1% to the upside. shery: let's take a look at energy. rest on is helping lift brent and wti. europe is facing for a full cut off in russian gas supply. su keenan joins us latest. su: west texas up 1.5%. that is on top of rising in the u.s. session. we are on a pattern of rebound. analysts are pointing out the acquitted a is thin, -- liquidity is thin. you have more machines than humans trading, referencing computer-driven trades. west texas trading in a technical band. bigger picture has been choppy. traders are weighing concerns that a recession will help -- our demand. with friends, -- brent, futures in excess of four dollars higher. that is a huge premium and it indicates refiners are willing to pay u

the leading contenders much more minded to be conservative than the extreme methods of kuroda.ult of this unhappiness with lack of spending power, we are going to end up with a governor of the bank of japan who is more minded to say open up the trading range of the 10 year bond. at the moment zero plus or -25 basis points may under a new governor go to plus or -50. >> are we expecting any big policy changes from the election? that is hard to see in japan sometimes but what would you be watching going into the polls this weekend? >> the thing about fumio kishida is he looks like a gray man. a lot of people say yes, but after elections, he is restraining himself until he gets the elections out of the way and then we will see who he really is. i think what we see is he is still a gray man but there are four things we need to watch. tourism, defense, nuclear power reopening, and the boj. tourism, japan has been restrained on opening up to tourism. perhaps we will see more of that. defense is powered by shinzo abe who is more powerful behind the throne then in it and pushing to move