the pboc can cut the policy rates by another 20 basis points perhaps. and another 75 basis points cut in the rrr. and also supporting the small private firms and fiscal policy, but obviously, sounding like a broken record but it is covid zero policy. yvonne: we heard from the president reaffirming that growth target, right? it almost seems impossible at this point. chang: it does seem far-fetched to think about that target. yvonne: chang shu, thank you so much, they are adjusting their growth targets in china. some lines crossing in macau, covid cases increasing to 414. still not seeing any let up in sight with this covid flareup in macau. they will go through another round of testing today. they have closed public venues and departments like bars, nightclubs, cinemas, basically almost everything except the casinos rishaad: this is an industry group which has had unrelenting pressure on it since covid was first identified. let's get to some of those first use headlines -- word news headlines. >> g7 leaders will explore implementing a price cap on russia

haidi: does it seem like the pboc is in way and see moment.e start when it comes to expectations. the decision that's due on wednesday, rates are expected to stay unchanged. after that decision, i guess they bought themselves some time for short-term bond issuance, as well as local bonds and short-term corporate loans. are they just waiting to see whether a rebound is reflected in the data and the month succumb? >> in a way, yes. we actually took out our rate cut since mid-march. we know that the fed is accelerating rate hikes and its diminishing. that's one concern and existing in february, especially on the bond market, and equities are conflating as the sentiment and turning more positive after the opening of key cities and so, in a way, inflation is also a concern in the pboc is watching close. in the markets, cpi, and also the services, the core services inflation is easing, suggesting week domestic demand. that's clearly the commodity price, lowboy inflationary price, these are all the things that we should be watching. >> given a great

even though they are lowering interest rates and doing monetary easing, that pboc and policymakers inre utilizing their fx reserve capacity and intervening to stabilize the currency. the other thing is, we are starting to see signs that china's economic recovery from the recent lockdowns is starting to gather momentum. . there is still a current account surplus in china. so the economic fundamentals are recovering, and there is some fx intervention from the pboc there , so not entirely surprising that the currency is still somewhat stable even though lawmakers our easy monetary policy. shery:. shery: what other countries in the e.m. fx space can we expect to see this from? brendan: i think some of the currencies associated with strong underlying fundamentals and who also some currencies that have hawkish central banks, or central banks turning in a more hawkish direction, could be more resilient. we like the hong kong dollar. we still think the currency peg is going to be intact, hong kong will maintain the peg. there is little risk of the peg breaking in hong kong. we also like the t

could we put don't fight the pboc to it?ase, are we at an inflection point here for chinese markets? sofia: china is the only major economy in the world that is actually listening policy, where inflation is not a problem. inflation is extremely low in china even though costs for factories are coming up. wednesday is the key day, because we are getting the data dump for may and industrial production, retail sales. those are key numbers for investors. let's see if we get a better number than the previous month. and also we get the pboc's liquidity operations, a chance for them to either add more cash into the financial system, or make a move on interest rates. the pboc has not done this since january. it has been very careful about adding more stimulus. so we will see what we get on wednesday. this could be another catalyst for the chinese markets. shery: we are seeing incredible weakness in the asian currencies at the moment given the strength of the dollar. what does this mean for the chinese yuan? sofia: we had interesting

jonathan: news from reuters -- pboc accepting ant's application.ieve we have a move from alibaba we can take a look at as well. stock up 9.4%. any thoughts on that? damian: i think chinese equities are basically turning the page. if you look at chinese equities relative to the s&p, the margin of differential has gone the other way, finally. chinese equities have been in the doghouse forever. interested to see them rowing up the news. jonathan: coming up next, stephen schork. futures up higher. this is bloomberg. ♪ ritika: keeping you up-to-date with news from around the world. i'm ritika gupta. ukraine is one step closer to becoming a member of the european union. bloomberg has learned the european commission has recommended ukraine to candidate status with conditions kyiv will have to meet on the rule of law, justice, and anticorruption. it is significant for ukraine, but there is no fast track cap to speed up the arduous membership method. ukraine is blaming russia for stoking up global inflation. ukrainian president zelenskyy said russia is usin

you can go to bloomberg for more on the pboc decision. go to the terminal, had commentary and analysis. yvonne: let's bring in paul michael. -- mackel. is this a confidence issue for the bank of japan? >> not a policy -- confidence issue, but there's a big? . should there -- should they be joining the hawkish party for central banks? my argument is no. when you look at the bank of japan's preferred measure of inflation it is still quite low. you have a headline of 2%, but i prefer to measure is .8. there is no great push for them to change the ycc just yet. rishaad: does this whole policy of the institute have to come to the love dimension returns? it does seem they are not going anywhere. yesterday they said if they did not do it what would it look like? >> you raise a point. you would be pushing on the strain. how much extra juice are you going to get from this policy when the rest of the world is moving lower hawkish stance? can a weak yen a boost their growth and the inflation profile for them? that is not the easiest thing to do. the

the pboc promise to's monetary policy to help maintain growth. to the u.s., now the u.s. has condemned china's policies towards religious minorities, particularly in hong kong. the state department again accused china of committing genocide against ethnic uighur muslims. it has also highlighted a crackdown on hong kong associated with the 2009 pro-democracy protest, citing the arrest. in president biden asked congress to pass gun-control legislation, calling for a raft of measures in a nationally televised address. biden said american should make gun laws for their vote in the upcoming midterm elections. he also called on lawmakers to pass laws banning assault weapons a high-capacity magazine, and also to repeal liability shields for manufacturers with guns. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. i'm su keenan, this is bloomberg. david: we will be speaking with wealth management despite all the volatility in the energy market, they do remain fairly optimistic on oil and gas produ

the pboc pledged in may 2 open financial markets.s going into virtual lockdown as it limits fuel supply to only essential services such as health and public transport for two weeks. the foreign exchange reserves at a record low, the country is struggling to pay for imports of food, medicine, and fuel. the prime minister warned last week of a complete collapse of the economy. i u.s. costs -- cross-country amtrak train has derailed, killing at least three. it was traveling from los angeles to chicago when it struck a dump truck, causing several cars to derail. 275 people were on board. multiple injuries are reported. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. kathleen: still ahead, we assess the impact on bond markets as china's fourth biggest developer warns it might miss payment on a local note. pimco's stephen chang joins us for that. up next, oil extends gains as the g7 pushes for a price cap on russian

does that mean there is less willing for the pboc to cut rates now? there are some who think that the pboc would be reluctant to do that. but there are others saying that the pboc if they want to invigorate economic activity and not in the second half of the year, things are not as bad as they were but there is still a slowdown going on. there are still a lot of risks to see. always a pleasure. richard foster, the senior editor there. the huge problem is inflation. this get to our first word news item. correct the current obsession saying the leg in raising rates is partly to blame. it will take several years to return to the that inflation goes. the view on slowing growth was shared by yellen. >> we have had high inflation and the first half. that locks in high inflation through the entire year. but i do expect them to increase the pace of inflation -- the pace of inflation. there are so many uncertainties on the global development. >> macau casinos fell after the first covid-19 outbreak in eight months. he revealed 21 preliminary positive cases. and

that is after the stronger-than-expected fix from the pboc.te street says it's not pursuing a combination with credit suisse, the denial comes after a blog reported on a possible bid. state street says there is no basis to the rumors and said speculation is "stupid." remarkable comeback in output from its chinese factory, tripling production, more than 33,000 cars at shanghai plan. tesla has gone to great lengths to keep its chinese factory running amid strict lockdowns was staff working around-the-clock in a closed loop system. apple plans to extend its lineup of laptops using it speedier chips as it aims to grab a bigger share of the market. sources say the company is working on a larger macbook air with a 15 inch screen. that could be the first model of that size in its 14 year history. rishaad: let's look at automobile stocks. david: a different story. we have that. tesla. i note that there might be benefits from increased visibility. rishaad: yes. again, coming back to alibaba. shares on the way down. not as much as earlier. we do have th

haidi: do we see that being a whole 20 five basis point from the pboc?ichard: i think it will continue to be quite targeted, haidi. they like to support the economy where they can, recognizing that if they are running a dynamic zero covert strategy, there will be limitations on how much economic activity can actually occur, regardless of how much they are doing. i think they just want to get bang for their buck. haidi: still having a whatever it takes moment. what does that mean going forward in terms that they have also moved a little bit slower than perhaps they should have? richard: i think there will be tightening for every meeting for the rest of this year, and that is a reasonable expectation. the 50 point hike recently, whether they discussed anything larger than that, i would be surprised if they did, so i think the market will settle on this idea that there are a couple of 50's coming from the reserve bank. haidi: you see the cementing of reflation aerate expectations -- reflationary expectations. richard: property prices are quite below, which

perhaps a little bit more worry about this pair. >> the pboc is probably taking the yen weakness into account. >> 1983 highs, you saw the -- 1993 highs we see the dollar versus yen a lot of people on the street talking about if you will see more the stock losses. top strategists say more pain to come, let's bring in them for our morning calls, most people are saying this is not the worst yet. >> about a 3% drop from where we are now, that is -- 30% drop from where we are now. they are saying in a typical recession the s&p 500 trades around the 3200 level, with a 13% drop for we are now, reduce ea 1970's -- if we do see a 1970's style inflation -- the link here is investors believe inflation is sustained they look at real instead of nominal earnings-per-share. softbank says it will be negative this year, goldman sachs weighing in saying the s&p has not fully priced in the recession risks. morgan stanley saying we are getting done that 3000 points level. >> talking about the federal reserve, perhaps being unable to get inflation in check and saying the -- that cost would be in terms of

also, the pboc is on a slightly easing bias. they may not reduce interest rates immediately, but they are heading in the direction where they are more likely to do easing than tightening, which is going to -- nursing volume improve again. investors are coming back. ready to retract growing assertions from beijing that the taiwan strait is not international waters. let's bring in our north asia correspondent. how significant is this? >> it could be very significant. taiwan has long been a potential flashpoint between china and the united states and we heard a couple weeks ago from sources saying essentially that china has brought up the issue of taiwan not being international waters on just about every occasion and in greater frequency in their behind the scenes discussions. that has raised all barbells, more urgent -- raised all barbells -- alarm bells. perhaps this is a deliberate effort by china to muddy the legal interpretation of the seas around taiwan in ways it could suggest china regards the state as an internal waterway,

it rose to $1.92 million, including a swap from the pboc. sri lanka needs nearly $6 billion in the next six months to tackle shortages of essentials including food, fuel and benefits. to china with a warning for australia to stop so-called provocations or face serious consequences. aging night allegations that chinese jets intercepted and australian surveillance aircraft late last month over the south china sea. australia says the chinese aircraft flew in a dangerous manner but beijing says it's actions were legal and reasonable. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. shery: still ahead, an exclusive interview with australia's chief scientist. we will talk about the future of quantum computing and other waves of emerging technology. up next, more on the economic outlook for east asia and the pacific. this is bloomberg. ♪ >> many countries will have a hard time or avoiding a recession. it's not a global reces

is that the whole pboc doing easing narratives at play? guest: that is right.e some divergence. for china, we believe the rally will have a lot more legs. the risk has become more attractive area the government has said it could meet the upside, we see inflation being very low. equity markets are performing better. shery: given that expectations are so low. how much room is there for upside surprise given earnings expectations are so low? guest: perhaps you can get another five to 10% in the near term. we expect bond markets -- a lot more within china, so we have the earnings capitalists, the additional upside could provide an additional tailwind. haidi: we see pullback when it comes to crude. how do you like getting that exposure within asia? guest: yes, energy in general is a hedge against inflation, geopolitics,. in asia, our exposure will come from the asean region. heavy exposure. its opening much later, and there are high exposures to banks. much lower explosion to the probability of recession. haidi: always great to have you with us. let's get you to von

bloomberg intelligence says this is the further preview -- pboc stimulus. it is hurting the sale.y have issued a decree making electricity essential public service after workers went on strike. the plan was to hold off on thursday. the lack of funds mired sri lanka. the securities and exchange commission is investigating whether marketing of the stablecoin violated investor protection regulations before last months crash. sec attorneys are looking into whether the terror formed -- this sent shock waves over the phone here. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. >> hong kong is bouncing back. >> business is good. there are storm clouds on the horizon. we know it is being met with inflation. we know that the -- for the time being, things are quite good. this is one of the later markers to come out of the pandemic. economic activity in china, economic activity remains pretty strong. for the time being, as interest rates increased, there are problems with

we are seeing divergence between the fed, boj, pboc.you watching to gauge where opportunities could be? >> the region we like china most is because it just went through a deep recession and is now coming out of it. in the process of exiting it, recovery is expected to be bumpy because of lingering covid control policy risks so it will be a bumpy road but i think china has turned a corner and that is the key opportunity for us in the second half, likely to see global volatility still elevated. shery: divergence between the fed and boj, we have seen a week yen but beneficiaries have not done that well. >> equities is supposed to be the beneficiary but at the moment, this has all been driven by movement in the u.s. yield and boj has done all they can keep the yield curve control policy in place so i think the question is if they will be able to maintain policy and will u.s. yields start coming down. that's a function of the inflation. so there are a lot of moving parts. haidi: one of those is the recovery in china. you call it meaningful.

exports might rebound, but pboc might have to step up with easing.ed is still on the hiking path. they you want to still going to be under some pressure in the short-term, but it's probably going to recover later this year when china's growth stabilizes. shery: the chinese economy could get a boost if the u.s. decides to lift tariffs. let's get to vonnie quinn. vonnie: looks like it might happen. the commerce secretary says it may make sense to lift tariffs on some goods. speaking on cnn, she said president biden's opening to any good idea that will help american families. officials have offered differing views on what to do with the tariffs. >> steel and aluminum, we decided to keep some of those tariffs because we need to protect workers and steel industry. it's a matter of national security. there are other products, household goods, etc.. it may make sense. vonnie: boris johnson expects rebel mps to trigger a leadership vote. a source as tory members may be on the cost of getting the letters needed to force the vote. calls to step down have inten

the pboc has taken a stand refraining interest rate cuts. extended trading hours for the yuan. it is part of a global influence. they pledged to open to financial markets as the imf lifted the special drawing rights currency basket. limit school supplies only essential services such as health and public transport for two weeks. they foreign-exchange reserve has a record low, they are struggling to pay for medicine and feel there is a complete collapse of the economy as it worsens. china has hit eight dump truck in missouri. amtrak says the train was traveling from los angeles to chicago instruct the construction vehicle. 250 people were in the train and multiple injuries have been reported. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. kathleen: we speak with carmen to get her thoughts on a possible recession as she prepares to leave her influential role as the or senior vice president and chief economist. -- as the senior vice president and chief economist. investors battle volatility. t

the pboc pledging to continue to support the economy. madame lagarde is up next live.loomberg. ♪ this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. psst. girl. you can do better. ok. wow. i'm right here. and you can do better, too. at least with your big name wireless carrier. with xfinity mobile, you can get unlimited for $30 per month on the nation's most reliable 5g network. they can even save you hundreds a year on your wireless bill, over t-mobile, at&t and verizon. wow. i can do better. yes, you can. i can do better, too. break free from the big three and switch to xfinity mobile. >> this is "bloomberg surveillance: early edition" with francine lacqua. francine: morning and welcome to "bloomberg surveillance: early edition."

the pboc has also promised to use monetary policy to help maintain growth.bal news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. i'm su keenan. this is bloomberg. >> coming up, the first ever aboriginal woman to serve and we will discuss the importance of indigenous representation in government. this is bloomberg. ♪ >> i begin by acknowledging the traditional owners of the land on which we make our respect to the elders past present and emerging. on behalf of the australian labor party, i commit to the -- >> the australian prime minister beginning his election night victory speak -- speech a promise to enshrine the voices of first nation people and parliament. it was that pledge for a national referendum. i spoke with the first aboriginal woman to hold office as minister for indigenous australians. >> it is about trying to reach consensus across the parliament which includes the opposition. it includes the green and the number of independence. the most important thing is to build a

the figure includes a swap facility from the pboc worth about 1.5 million dollars. sri lanka needs $6 billion to tackle the shortage which includes food, fuel and medicine. china meanwhile is warning australia to stop provocations or it will face serious consequences. they denied allegations a chinese jet intercepted and australian surveillance aircraft over the south china sea. australia says the chinese aircraft flew in a dangerous manner but beijing said that is unreasonable. nasa will launch three rockets in june and july from australia's northern territory. it's the first time the space agency has used a commercial pad outside the u.s. in its more than 50 year history. it is privately run by -- the prime minister says it would be the first nasa launch from australia since 1995. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. shery: coming up, or exclusive interview with the ceo of morgan stanley australia as the bank holds its summit in

the pboc had pledged to extend the currency trading hours.me, though, no clarity on when that will start. rishaad: let's have a look also at when that will -- have a look at what is going on with markets. the casino side of things. casino stocks perhaps not as beleaguered, moving to the upside. we have the jump taking place as xi jinping's visit to hong kong has been boosting sentiment. unfortunately, though, covid cases increasing to 357 in that territory. elsewhere, we do ca -- we do see this rally after news that casino operators have gotten extensions as they focus in on what they do next. that is a look at what is going on with casinos. this is a look at overall markets. currently we have stocks, generally speaking, including in thailand, up 0.7%. positivity also been helped along by u.s. equity futures. investors assessing whether inflation is cresting perhaps, or is it possible we could avert and avoid a recession. asian shares are up over all 1.3 percent with chinese tech companies helping a lot. haslinda: that's right, we have the cs

. >> is kind of what he is saying, he expects rates to go up to 3.5% and then pause in 2023, pboc 2024 cuts from the federal reserve, that means we can start leaning on our pricing in this pivot from the dead. -- fed. he said they let the genie of the bottle that they could be pausing in the second half, he depends on why. is is inflation or if something started to break, the economy or the markets, if it is a letter that is bad news -- latter that is bad news. >> let's get to mark cranfield, a word about the beige book that is backing up the fed thinking. >> although he seems to be reading a different version of the beige book to different people. there are five more federal reserve meetings this year. if you want to see 3.5%, we have to do 50 basis points at each of those five meetings. it would be very aggressive and is not lee priced in -- not fully priced into the equity market in the united states. if the fed was to follow his direction there and we get to the end of the year, get that 3.5 level, i do not think you have to wait until 2024 for the fed to cut, they would have to do

and supply chains smooth oed out economists expect the cpi to stay below 3% which should give the pboc to lower rates to further shoring up growth. fueling concerns of the outlook, shanghai has announced covid curves ten days after it ended the two-month lockdown in most part of the city authorities want to test half of the residents this weekend and some residents are forced to stay home while they do that in beijing, entertainment venues have been shut in a couple of districts days after residents there were able to go out and eat in a restaurant again. in singapore, sam baddas, back to you >>> the bank of england published eight major banks concluding the lenders would no put the banks at risk if it failed >>> state street has denied a are report it is weighing a takeover of credit suisse. that follows a denial from the ceo who described the reports as st stupid shares of credit suisse closed 5% lower. >>> coming up, the foreign minister tells cnbc what it would take to back a russian gas embargo. that is coming up next >>> welcome back to the program. hungary's foreign minister say

that is also on its policy diversions and what we see as more easing coming through from the pboc laterthis week. it is about a bond yields bike, i mentioned the japanese bond market, also new zealand with the 10 year yield at a 2014 high. let's have a look at what we are seeing in the end. about an hour ago it hit the 1998 low. it is down 15% against the greenback so far this year, the worst-performing major currency which had these reiterations from top government officials about the concern. a 24 year low against the yen. bloomberg economic saying this is an overshoot, the yen at 130, a more reasonable level. it will be interesting to see where to pair trades. as we see governor kuroda speaking in parliament. dani: now from asia to the u.k. were the government is expected to move ahead with legislation that could allow it to override parts of the brexit deal relating to the northern ireland protocol it reached with the eu. for more we are joined by bloomberg's lizzie burden. >> the idea is this will fast-track goods from britain to northern ireland and into the eu. that raises questi

that is off the strong session in asia overnight and the pboc pledge of monetary support to help the economy recover from covid lockdowns. on the down side, health care and technology under performing. brian, fixed income. european yields ticked higher. this morning, all eyes on the ecb as they gather in portugal one line i bring from the ecb they intend to move on rates if there is uncertainty not afraid to go aggressively promptly in terms of rate hikes should inflation situation intensify. the 10-year bund at 3.6% brian. >> julianna, thank you very much >>> let's get back to the top stories. including a lot of back and forth rumors and speculation about a deal for online trading platform robinhood silvana henao has more >> good morning, brian shares of robinhood on a wild ride giving back the sharp gains yesterday after ftx founder downplayed the reports and exploring it may acquire the trading outfit in the statement to kate rooney, he says we are excited about the robinhood prospects. i have been impressed by the business that vlad and his team built. there are no active convers

the board, that is on the progrowth policies we are looking ahead to , the potential tweaks from the pboc to key lending rates. in terms of the global recession selloff, that is going through into asia. down for a seventh session in a row and this is the longest losing streak we have seen for asian stocks since the height of the pandemic in march 2020. tom: seventh session in a row. thank you, juliette saly, with the breakdown of the major moves across the asian markets. christine lagarde told euro area finance ministers about the plans. that is according to people briefed on their discussions. joining us now is lizzy burden with the details. tell us about this new crisis, what we have heard about this referring from -- briefing from madam lagarde. missy -- lizzy: it has not hiked since 2011 and the worry is the weaker nations will be exposed when you get financial turbulence. yesterday, madam lagarde said when bond yields -- when bond spreads wide and so much, that is when it is going to kick in or when markets start moving at certain speeds, that is when it is going to kick in. she did

and of course we like to pick on the bank of japan, last man standing, only it's not, in china the pbocs actively easing and i wonder how you view their role into fx more broadly. mark: yet and it's a great point because i think japan is focused on having a wider output gap with an implementation around perspectives on the output gap. but it doesn't mean that they are not going to move. it just means they aren't moving as fast as the market would like where we are inevitably going to see a ticket from the doj, it's just a matter of timing. quite interesting around the world, it there are still little pockets of reflation that are hard to discover but you have got to look through the looking glass a little bit. if you look at it there's a little bit of reflation with a lot of stagflation and something that looks like deflation with growth weakening and that's where china is at where the thing that's interesting is 2023. the atlanta fed and gdp are basically at zero where we are expecting the euro zone in the second half of this year. predications are easing. the credit impulse is rising

and maybe the pboc or chinese central bank will have monetary support for the economy. you saw what it did for shanghai and shenzhen with positive gains. hang seng closed in the red. also boosted by the index and tech shares closing up and a similar fight back from alibaba. alibaba opened with a stark loss they battled back from that and also closed the day higher and that also lit the sentiment for the chinese tech shares. nio with the decline they fell after the electric carmaker reported a bigger first quarter loss and revenue may slow down in the current quarter. look at south korea. kospi falling today. the trucker strike is in the fourth day and impeding deliveries and shipments from the big egest companies you see how shares are moving there. we saw hyundai did battle back, but they settled lower there we have to talk about the japanese yen still capped off a pretty stark loss for the japanese currency we see the nikkei 225 did not take strength on that. the nikkei ended in the red today. that is the wrap up for markets in asia closed out dom, back to you >> jp o

sources tell us the pboc will accept the company's application and start a review process looking into company's strength and business plans. haidi: next, we will hear from the new york fed president and what he sees a mild recession for the u.s. that conversation is just ahead. this is bloomberg. ♪ millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them. get $250 off an eligible 5g phone with xfinity mobile. take the savings challenge at xfinitymobile.com/mysavings or visit your xfinity store and talk to our switch squad today. >> and i would even say with the right announcement of the central banks now to increase the interest rates, in a steep way, in particular when i look at the steps announced by the fed, i support those steps. i think that it is always hard to put a percentage, but i would say

that pboc's of the focus is on inflation, supply chain and ensuring employment. yvonne: thank you.ve some breaking news now when it comes to indonesia. they are considering raising the -- to resist -- reduce fuel cost. they containing 35% of content, with the 30% mix. basically they need to save fuel costs, giving these high -- given these high crude prices. raising the biodiesel. sulci down one point 3%. >> president xi jinping says covid zero remains the most economic and effective policy for china. in wuhan, he says herd immunity would risk to many lives and lead to unimaginable consequences. he defended the lockdown policy, which isolated china from the rest of the world is linked to their purposes. suffering is up -- south korea one of the best places to be in the pandemic followed by the uae and ireland. we ranked -- how they lived with the virus and resumed without a substantial spike index. china, taiwan and russia are at the bottom of the list. r. kelly has been sentenced to 30 years inc. prison for sexually abusing young women. he was convicted of racketeering and sex tra

the figure includes this controversial swap facility from the pboc worth around $1.5 billion. sri lanka needs a $6 billion to tackle shortages of essentials including food, fuel, and medicines. china warning australia to stop so-called provocations or else face serious consequences. beijing also denying the allocation -- the allegations a chinese jet -- australia says the chinese aircraft flew in a dangerous manner beijing said their actions were legal and responsible. bloomberg learned the biden administration is proposing a plan to wean the u.s. of russian uranium imports. the white house is pushing lawmakers to support the $4.3 billion plan with officials from the energy department meeting with key congressional staff to plead their case. the proposal would boost uranium purchases from domestic producers and it does require approval from congress. and that is a look at the first word headlines. david: a quick glance across these markets. we are just over 30 minutes into the chinese session. session highs on the regional bank mark -- benchmark. we are back above the 50 day m

the pboc is also in the mood possibly to ease policy again. they will certainly not hike interest rates which is what we are seeing in the rest of the world. that slightly better mood in china is helping the rest of asia as well. of course it could all change in wall street opens tonight. juliette: a relief rally in equities. tell us what is happening in the bond market? it does look like traders took the comments from the rba governor as a little dovish. mark: they certainly did. effectively took 75 basis points off the table, which is a big contrast to the federal reserve. immediately you saw the aussie yield curve reprice. it steepened with short end of the curve yields going down more. australia is not in isolation. the australian bond market is still closely tied to what happens in the g10 space. so if treasury yields continue to rise, if the long end of the treasury market is under pressure, it will be very difficult for australian bonds to ignore that, no matter what the rba says. particularly in the 10 year sector of the aussie bond ma

yvonne: that stronger fix on the pboc today, did you not expect the renminbi would be trading sideways from here on forward? mark: i think that is the message from the central bank. they are happy to see dollar yuan calm down, not go anywhere too spectacular. you can see the option market has cooled down quite a lot as well. there is a lot of work for the chinese authorities to do in trying to reestablish growth in the country. they have a lot of credit issues to address. they want to make sure the banking sector does not take on too many bad loans. the last thing they need is high volatility in the currency. they would like to push that into a corner where it is not part of the big picture and just focus on the things they need to get done. rishaad: mark, good stuff. you can follow his musings and all the day's tradings on the terminal on mliv . yvonne: when you talk about recession risks and china demand picture, how is that being impacted, you are seeing in much better picture than yesterday. we snapped out of seven or eight days of losses. iron ore is slightly higher and dollar

cap performing its peers by the most in seven years as the pboc pledges more stimulus.n stock editor. we expect to see the divergence continue? reporter: i think the stimulus is playing a big role in terms of investor sentiment. that is being counterbalanced by the gloomy picture of employment. as we look at history, we did some data crunching, upside will be limited. csi 300, every time the index hits the bottom, the reality -- rally is 13%. from the april low, we have seen 17% gains. history is not really on the side of the rally. shery: given those challenges, what are the cautious voices saying? so far we are seeing more banks and funds turning bullish. reporter: it's getting harder and harder to find cautious voices. we didn't interview and they are not in a rush to broaden exposure to china. the reason is adherence to covid zero. as you discussed previously, she has affirmed covid zero and says this is the only way forward to fight covid in china and that could have implications on the recovery of sumer spending. they are saying it's unlikely consumer spending wil

the pboc is very aware and announced a range of measures to stabilize the economy.er we get more interest rates codes, i don't think so. for us, when you do get chinese government bonds on par with u.s. government bonds, we have shed some bonds at these levels. shery: european markets seem to be going in line with >> happening with the fed tightening. ecb seems pressure to act. is there a way you can take some advantage of that volatility? guest: there is. that knee-jerk reaction, who would have thought, for us, we do not think growth in europe would be strong enough. we can catch up some of that overpricing of market expectations by adding to our european bond markets in that region of the world. shery: good to have you with us, thank you. taking you to tulsa, oklahoma where we are seeing confirmation of three people killed in a shooting, the shooter has died is according to the also police. the shooting happened in a medical building on a hospital campus. four casualties have been confirmed including the shooter. it's unclear how the shooter died. america is watch

lending are stripped or put under regulatory control perhaps in a holding company with oversight by the pboc happened with the ipo in 2020, it was scrapped at the last hour and alibaba and ant were put under regulatory scrutiny. they have been restructuring. it response to this bloomberg news story regulators aren't early-stage stocks -- talks to revive this ipo. they are denying their working for a resurrection of that and they are working on restructuring. bloomberg news is reporting these security regulator as established a team to reassess the shared sale plan of ant group and authorities partnering the final stages of issuing a long-awaited license that would pave the way for the resumption of an ipo and clear the way for regulators to essentially regulate ant group like a bank. that is the bigger back story, what is the restructuring going on? for the time we do not -- shery: i think we have lost stephen engle. the latest on those chinese tech names. coming up we speak exclusively to l'oreal about how china's stringent measures have impacted them. this is bloomberg. ♪ haidi: we are see

the pboc promises to use monetary policy to help maintain growth.ours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: millions of shanghai residents remain under strict lockdowns despite authorities claiming victory over the latest outbreak. we saw celebrations across the city earlier this week but for some parts of the population come it is not over. >> that is really. it is not widely known that 10% of the shanghai population, 2.2 5 million people, are still under intense restrictions and confined in lockdown to their homes because typically there has been a covid case in their apartment or neighborhood so there are stringent members being applied when a case is found. it's interesting because today we have seen seven cases reported outside the government mandated quarantine and shanghai. that's one of the highest numbers since we started easing out of the lot down there. it will be interesting to see if that elicits a response from authorities or a d

where do we stand there and the policy diversions we are seeing the pboc, how does that set up for stockell? >> i think the yuan is interesting, we have been debating internally quite a lot about much higher levels of realized volatility, it is assigned that is being allowed to flow more freely or in reflection of overall market volatility. we are at these levels against again, for fx traders that will be a worry. we might see another correction in the yen and chinese yuan lower. if you are an equity fester -- investor there is nothing told you back. haidi: getting china trade numbers at some point eminently this morning. that will give us more insight into how the economy is coming along. phil dobson there, let's take a look at some of the stories we will be watching. asia semiconductor shares could track lower as we had the intel seeing a weaker economy will affect demand and hurt their performance. micro electronics and other groups as well. we are watching shipping stocks. shery: especially after we had that call from j.p. morgan saying it expects a slowdown in freight traffic to wei

working out and the region is, [inaudible] shery: chinese media reporting there is no need for the pboc weakening yuan. is accommodative policy driving the outlook? >> i was surprised by that commentary. why would china need to hike rates? china should be doing the opposite. cutting interest rates. the concern is outflow of capital will be a problem. shery: sofia horta e costa with the outlook of what to expect when trade starts in hong kong, shanghai and shenzhen. this is bloomberg. ♪

we also have that divergence between the pboc and the fed. hong kong has been caught between.ng a change in the terminal chart now ending carrie lam of course, ending here on a good note as i said, the hang seng just outperforming in the past month or so. we have a lot of investors turning bullish on the outlook for hong kong and mainland stocks. there is the expectation we will see further fiscal support. we have china easing covid measures and further integration we can expect between mainland china and hong kong. we do have an etf fund being added to the stock connect scheme. >> we have seen 70% of fund managers now saying they will maintain or boost their holdings in china and hong kong in the next three months. we also see chinese indices rising at least 4% by year end. for marlis bring in -- for more, let's bring in a richard harriet . will china be the more stable bet given the outlook for the chinese economy and markets? >> can you repeat the question? you cut out for a second please. >> i was asking whether china would be the more stable and safe bet given of course t

. >> is talk about china, the pboc is going in a different direction, such as the boj as well, does thisence, how big is this a factor in what you like at the moment? >> it's huge or very significant because if you look at all the different markets in the region, the economies in the region, we have rate hike some policy hikes for pretty much every single one with it -- with the exception of china. china is in a different stage of the economic cycle. they really need to ease policy across a variety of different modalities in order to protect economic growth. so the case for china is that is good, in other words, the fundamental environment is necessitating an easing of policy, which we think the market responds to. it could be reduced to 14 arguments. number one, sequential activities are recovering from a low level in april. we saw data come in that shows a moderate increase. number two, policies easing across five dimensions of monetary fiscal, property, regulation in covid. number three, evaluations are still low following this very significant decline in prices we have seen, and numb

sources tell us the pboc will accept the company's application and start a review process looking into capital strength and business plans. sources tell us that malaysians state-owned firm could raise more than $230 million in an ipo of its palm oil unit. the investment arm is set to be asking for pictures for the potential listing. we preview central-bank decisions coming out of asia, >> i would even say with the announcement, with the right announcements, to increase the interest rates and a steve way, in particular when i look at the steps. again, i support those steps, clearly. i think that it always needs a percentage. but at least i would say we are 50% likely to have a recession globally, but also in europe. >> you think about the financial system and the ability to apply credit to people. i don't expect that to happen this time. i would expect a mild recession, like 1990 or 13,000 to one, not the recession like 1973 or 1974 or the great financial crisis. haidi: bloomberg economic advisor and deutsche bank on the odds of a recession. let's get more on the fed policy direction. o

shery: we have seen the resilience of the chinese yuan, despite the fact that that pboc is going in aompletely different direction. tell us a little bit what the easing of these measures means for what their debt is now. james: it is a marginal improvement for their growth outlook. we don't think china will get anywhere close to the 5.5 percent gdp growth target this year. the last number we had in terms of the forecast was 3.7%. that could be a little bit stronger if the quarantine restrictions are lifted, which they are going to be, in the stimulus which will also help, but our view is that they will not get close to the 5.5%. they seem to be doubling down on it in terms of official announcements for growth trajectory, but we don't think they are going to get there, basically. yvonne: your forecast for world gdp, 2.9 percent, revised down from three point 5%. does that factor in a possible recession for the u.s.? natasha: we don't think a recession risk for the u.s. is the story this year, it is a story for next year. you look at the u.s. economy this year, first growth quarter numb