mark cudmore, we thank you. bloomberg's mark cudmore. let's go to oil.g near a five-month high with heightened geo-political risks and supply constraints boosting prices. we have bloomberg senior editor reporter in singapore, stephen, thank you for joining us. what more can you tell us about this rally in oil prices? stephen: oil is up over 10% so far this year. there are a number of reasons, as you mention, there's the geopolitical risk with iran and the tension there with israel and what's going to happen to the region. that has been the story for the last six months. what is really driving the oil market now is playing fundamentals. you look at what opec-plus is doing, they have cut back in cap their production cuts in place going to the second quarter now. the market, a lot of the supply and the froth is being sucked out of the market. on top of that, there are pressure points. one of them being yesterday, mexico. bloomberg reported they canceled contracts for some of their heavier grade crude exports to refineries. in the u.s. and other places. that

joining us is mark cudmore weighing in into a growing debate over whether to focus on nominal yields,lie nominal -- where you stand on this? mark: this is a piece by simon flynt about who is correct. longtime viewers know i am disdainful of economists and take the side of traders almost always. for our colleague, simon, when it comes to fx markets those who are dominant are traders and the way you make that phrase is is it nominal yields or real yields that control markets? in theory it should be real. should not matter if nominal is higher. that is the case with emerging markets which do not have policy credibility. take currency, argentina, extreme cases. it turns out most traders in the front seat of action do not look at inflation. that is strong when it comes to the yen. that backs up the idea that sterling has been more of an emerging-market currency. haslinda: you are a traitor. what would it take for economists to be right? mark: if countries lose credibility like u.k. and become more like emerging-market countries, it is an idea that for the last 40 years we have not cared ab

i'm sure you get into that with our mliv colleague mark cudmore in a bit.t what we are seeing in the japanese stock markets as well. the nikkei has been showing a more pronounced move today compared to the past two sessions. it's being driven by the chipmaking and the ev related stocks as we've got the likes of tesla and texas instruments improving some of the market sentiment thanks to what we heard post earnings. that's driving the moves in the stock markets for now. paul: all right. thanks very much for that. let's steady on. japanese assets now. strategists say shorting the end is not a crowded trade right now. they also believe that any rally spurred by action from japanese authorities will likely end up being brief and far from brutal. for more on this, let's bring in mark cudmore. we are on the eve of the boj meeting. the bank of japan has suggested it is quite eager to put a floor under the yen. it's the ministry of finance's job to conduct intervention. how close are we to some sort of policy change from either the boj or the ministry of finance? >

mark cudmore joins us now. not surprising. mark: this is really a dollars story.t that headline. the rupee is at a five month high against almost every g10 currency. even on that screen we just showed it has gone through a350. the rupee is down .1% down against the dollar when the dollar is strengthening massively. the rupee is still going to be a relative outperformer in asia. we have had recent good economic data. trade deficit data came through that is strong. it is world leading growth. generally a good story. i am still on a relative basis bullish the rupee. haslinda: but it is not just about the rupee, it is about emerging-market currencies. breaching 16,000 a bank indonesia to intervene. that weakness in the emerging market currencies will persist. yuan case in point as well. mark: absolutely they will persist. first, strong dollar and higher u.s. yields is not generally good for emerging markets. yuan theyuan policy is important. we see the pboc has allowed more weakness. that means a shift lower in asian currencies in particular. so yes this is a tough en

lizzy: mark cudmore with a preview of the u.s. jobs report later. we have got plenty more else on the docket to keep us busy. at 7:00 a.m. london time, we get german factory orders and the consensus expectation for growth on a monthly basis but not on the year. at 1:30 p.m. u.k. time, the u.s. jobs report. if we see unemployment rising above 4% does it put it may cut on the table? mark not so sure. at 5:00 p.m. london time, though you might be in the pub, it is a question gdp, economist expecting a tick down to five point 3% growth in the fourth quarter of last year, but we will be across all of that data throughout the day, and to get you up to speed ready for your day do not forget to check out the daybreak newsletter, da why bigo -- da yb go on the terminal. janet yellen is speaking at an event. >>lge of the time, but i think like many of you one of the ways you gauge what is happening in china [indiscernible] lizzy: the point of this trip is to strengthen the u.s.-china economic relationship in a healthier way. janet yellen has talked about the

haslinda: all right, thanks to our mliv executive editor, mark cudmore. mark mobius sticking around. bear with us. still to come, goldman sachs shares their outlook on india's financial sector. it appears that strong growth is over, at least in the near term. this is bloomberg. ♪ starting a business is never easy, but starting it 8 months pregnant... that's a different story. with the chase ink card, we got up and running in no time. earn unlimited 1.5% cash back on every purchase with the chase ink business unlimited card. make more of what's yours. haslinda: welcome back to "bloomberg markets: asia." markets expecting the fed to wait until september for its first rate cut on the back of that strong i sent back to be pivot data. traders also pricing in rate cuts in july from the ecb and bank of canada and more moves from the boe and rbnz in august. let's talk central banks. we continue our conversation with mark mobius, chairman of emerging opportunities fund. is this a sign of more to come? >> i think yes, it could be. there is a very good possibility, y

let's dig in with mark cudmore. this on the back of the yen, at 34 year lows, but the weak yen is helping inflation in japan. the boj, a rock and a hard place . mark: you've raised an interesting point. i think all of the hoop law about a weaker yen is a little overhyped, don't think it's as problematic for the japanese economy as they think. the country still does not have high inflation, is not have runaway inflation. it is a problem in terms of it is the worst type of inflation so that is an issue and of course it is a major commodity importer. i think there probably won't be intervention. i expect the boj will probably attempt to be marginally hawkish but in typical fashion, they will mess it up. what the boj is good at is confusing and disappointing. [laughter] they will confuse and disappoint and after the press conference, dollar-yen will be higher. but it won't run away because the market is betting intervention. you have all of these hedge funds that will have downside puts in dollar-yen and i expect you get