we had so much news flow from the pboc. a weaker yuan also means if you own or you hold hong kong listed chinese stocks, weaker currency also plays into the picture. a very volatile market. i like what you said, just close your eyes and point. rishaad: it was interesting, you wrote yesterday how people threw away the traditional way of looking at stocks, i.e. valuations, etc. just trying to get inside the head of one man in effect is what you wrote about. today we have marco coming out essentially saying it is a good value. that is the antithesis of what you are writing about. give us a sense of how you balance this. >> i would love to have him on the show and asked -- he is using the old models of investing in china. let's look at the fundamentals, the earnings growth story, china's economy, which is still growing in a world where everyone is talking about recession in the u.s. and that is all anyone is focusing on. the fact china is still growing is good. he's right about that. the counter to his point is the market is no

manus: what do you think happens next with the pboc?her-than-expected for the yuan for the 26 day in a row. that is incremental messaging without taking out a mallet. you think after the congress this week that something much more prophetic happens in the yuan? eimear: it is a really hard call pit i think probably the best -- a really hard call. i think the best thing is if they move away from covid lockdowns and we saw a resumption of tourism. i think it is an interesting world we live in where even the pboc, the central bank of the second-biggest economy in the world has not managed to stabilize the currency and move markets in the way it has been directed. it is a global problem for emerging markets and it is only a very extreme hiking cycle like we've seen from brazil or significant fx intervention like we've seen from the czech republic that are able to support a domestic currency. basically we need action, not just talk. manus: ok. we need them to walk the walk, eimear, rather than just talk the talk. our chief economist is talkin

the pboc under further pressure as we head into the fourth quarter. the pboc one of the outliers with policy-setting compared to what we see around the rest of the world. around 90 central banks hiking. the question is how aggressive they can stay when there are more recession headwinds. kathleen: that is certainly the big story this week, because we've got the imf world bank meetings, all of these central bank aggressive hike craig stories is something emerging markets are already complaining about. of course there are a lot of questioning if it's going to be too much, because an unnecessarily deep recession and others are saying it will do what it needs to do and no matter what the cost or pain, it will bring down inflation. let's listen to larry summers, former treasury secretary, who has been pounding the table for the fed to keep raising rates until it meets that objective. larry: i think it is a real mistake to suggest that somehow we shouldn't do the monetary policies that are necessary to avoid inflation becoming entrenched because of concerns

a couple of things the pboc could do, first, directly intervene in markets. are signs beijing is already doing that with state-owned banks buying dollars wednesday and thursday, for example. the pboc could -- this is not the central scenario for many because china is paying to internationalize the yuan. they could do a one-time adjustment. there are a few options but all incredibly tough. david: ruth carson talking us through all things currencies. let's pivot back to equity markets because the fed is not going to anyway. uob is lifting the tide in singapore, out with earnings about three or four hours back, profits topping estimates. net interest margins above 2%, positive set of results. and as you can see, fairly positive market reaction. later today we will be speaking exclusively with the boss of the bank, the cfo comes on the show. david: let's have a look at first word news. the european central bank rising by 75 basis points, it was not unanimous. we policymakers wanted a smaller half-point in his. there was debate about whether to acknowledge quote p

there is a forecast the pboc will ease fixing at the congress wraps up on saturday.ut very much at the forefront, the pound. more volatile than bitcoin. yvonne: yes. the meme -- the memes have gotten out of hand. is this the end of volatility in u.k. assets? not quite. you have the budget, the hollow wean decision, volatility coming down when it comes to the pound. but look, we are crossing it with bitcoin and it is pretty much the same deal. rishaad: britain could have a new prime minister as soon as monday, the conservative party setting contest rules for candidates trying to succeed liz truss. >> we set out a vision for a low tax, a high-growth economy that would take advantage of the freedoms of brexit. i recognize that given the situation, i cannot deliver the mandate on which i was elected by the conservative party. i have spoken to his majesty the king to notify him i am resigning. yvonne: let's bring in leigh-ann gerrans, in london covering this big story. 44 days, the shortest service for any u.k. premier. what comes next? how do you rebuild this political p

that being said, pboc has lagged the global tightening cycle.t, but marginal at best. don't forget the credit intensity of gdp in china is off the charts. it suggests china has a lot of work to do, far more stimulus than the token policy injections we have seen today. >> as you have listed the litany of woes for china's economy, policymakers, it is pretty long at this point. none of them were really a surprise going into the party congress. does it feel like with the magnitude of selling that something has changed? that investors have given up or at least for now they are saying we are not willing to ride this out until something indicates things will change? what would that need to be? >> it is difficult to see a positive catalyst at this point. the one silver lining is that valuations are much improved in chinese asset markets but you need the positive catalyst to turn sentiment around. they're -- as such they are few and far between. we think march 2023 offers a potential inflection point, but of course that is some ways from now and in the m

instead, the pboc may pay more attention to u.s. inflation, the u.s.llover from the hawkish fed bounce. shery: good to have you with us, standard chartered bank. annabelle: ♪♪ this... is the planning effect. this is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor looking at your full financial picture. making sure you have the right balance of risk and reward. and helping you plan for future generations. this is "the planning effect" from fidelity. ♪ shery: china markets still shut down for the golden week holiday, but will reopen monday. what are we expecting? annabelle: it could be pretty good as the headwind or tailwind is going to be helping us monday morning, coming from the broader nsc i index. even though it is lower today, you can see on the bottom of the screen that we are still in track for a week of gains after a seven-week slide rid that is one positive factor. the other factor is, when you look at chinese assets w my -- we monitor in the

the pboc is moving at an easing direction. it is clear that the authorities in china do not think sizable monetary easing is the way to go. that's in part because they have the idea about deleveraging. this policy has been behind destroying the construction market particularly residential construction. real estate in china is central to the growth model. it accounts for about 30% of gdp. when you get to the point where you are seeing modest boycotts, something is seriously wrong. guy: we have seen the biggest move in yields to the upside in the u.k. 30 year since 1998. do you think this time next week the bank of england is going to be in a position to withdraw support for the long end of the yield market? >> much depends on whether the government can regain credibility. i have grave doubts about the bank of england policy. they are raising rates -- that's not what they should be doing. someone made a point that they should be the market maker of last resort not the buyer of last resort and i think that's right. i think many o

surely the pboc wants to do something. something has to be done. for offshore, there are no real limits. we're above 726. that is what the market has been pricing in. it is still very bearish. rishaad: great strategist. it's being seen as a catastrophe. let's get the first word news. >> you said it not me. the leadership of this trust does appear poised to collapse. her to parts are combined with bitter party division over fracking policy have convinced many conservative mps that she should resign immediately. vladimir putin has extended marshall low in four occupied zones of ukraine and stepped up security in year -- nearby regions. the actions, have ukrainian forces press their advance. ukrainian western nations accuse iran of providing russia with drones. a bloomberg source says the eu has proposed sanctioning three iranian generals and one entity for providing military support to russia. the u.s. says it has observed growing cyber security threats at home, the remarks come amid tensions over issues from trade to human rights and the status of t

expectations from some that may be the pboc will have to step up with further evening -- easing for the world's second-largest economy. up by four points as things stand. over in spain, a loss of only 3/10 of a percent. a week of gains in europe last week. two weeks straight of gains stateside. let's see if the futures in the u.s. are pointing to build on those gains. the dollar is stronger adding to that risk off, a slight modest risk off sentiment. currently gaining 3/10 of a percent. the rally we saw u.s. treasuries coming off slightly towards the end of the week. what will be in store later this week again. expecting 75 basis points. that's what investors are baking in from the fed. the signaling will be consequential as the frontloading -- will the frontloading come to an end. $95 of weakness across brent. tying that back to the data story out of china and what that means for demand for oil going forward. let's go to mark cudmore. you are looking at china and u.s. yields. i'm old enough to remember when chinese yields were looking attractive versus their u.s. counterparts pulling i

the pboc has put it on hold since august to afford further depreciation pressures on the yuan.uropean a national gas surged, snapping a five-day losing streak as policymakers related to biden on it capping prices. france, italy and poland want to limit prices but germany as opposed to the idea, saying it would endanger supply at a time of the region needs all the flow it can get to avoid blackouts and rationing. a failure to agree on a joint response risks fragmenting of the fragile eu market. the white house has accused iran of sending trainers and technicians to crimea to support russian attacks on ukraine with a rainy unit made of drones. u.s. national security council spokesperson at john kirby says iranian advisers are helping russian pilots based in crimea to operate the drones. kirby says the u.s. will consider new sanctions against iran over the weapons transfers. malaysia will hold its general election on november 19 with prime minister's party looking to capitalize in victories in local polls. the election commission fixed election day for november 5 and campaigning w

the pboc has put further stimulus on hold. european natural gas surged snapping five-day losing run as policymakers remain divided on capping prices. france, italy, and poland want to limit prices but germany is supposed. the failure to agree on a joint response risks fragmenting of the already fragile eu market. the white house has accused tehran of sending trainers and technicians to crimea to support russian attacks on ukraine with drones. a spokesman says iranian advisers are helping russian pilots based in crimea to operate the drones. he also says the u.s. will consider more sanctions over the weapons transfers. >> malaysia will hold general elections. the election commission fixed nomination day for november 5 and the campaigning time will run for 14 days. multiparty contests will make it tricky for any party to win an outright majority. 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. paul: still

>> it is not really a problem the pboc can solve.onstraints on chinese economic growth are very deep and structural in some respects. but also, there is a sense from an ideological point of view, the unwillingness to give stimulus to the property market, for example, which would be an easy win in terms of getting the data to be more friendly. that unwillingness to stimulate the property sector remains firmly intact and i suspect it is coming from an ideological standpoint. against the background where the chinese government has reasons to feel under greater threat from countries that used to be friendly to it, there's a more defensive approach, a more security oriented approach to managing the economy. when security, rather than efficiency, becomes the dominating and simple, then growth is more difficult to support. francine: talk to me a little bit about dollar. it has been weakening somewhat. is this the start of something broader? >> i'm not sure. there is still plenty of evidence that the united states economy is very strong. the

the pboc just this weekend ending events trigger study yuan fixings.ing that party congress, authorities wanted stability in the markets. we have that fixing around 7.11. now they fix it around 7.12. that is higher than expected but still this gives an indication of where the yuan is headed. the fact that the pboc continues to listen monetary policy does not bode well for the chinese currency. kriti: something we will keep an eye on. shery ahn, we thank you as always. joining us now is stephen parker, head of advisory solutions at jp morgan. let us pick up where sherry left off. how concerned should we be about china? is there a geopolitical risk premium? steven: what is interesting is it has been a chinese issue. we are not seeing contagion and other market, even around asia. that would be unthinkable to previous years when he sought news like this. when i talk to our emerging-market portfolio managers, they have had a cautious view on china for a wild, primarily because of that regulatory uncertainty as it relates to markets. they are not ready to mo

the pboc giving more positive messaging today about maintaining stability. euro stoxx 50 futures flat in the face of strength in asia and weakness in u.s. futures. it is numbers out of alphabet, sales disappointing, the forecast disappointing in the case of microsoft and texas instruments with a disappointing forecast, too. let's not lose sight of fixed income and treasury yields, the 10-year treasury yield low for -- below 4.1 percent, driven by weakness in data. there has been no change in expectations around 75 basis points from the fed, but it takes pressure off of risk assets and has allowed them to rally short-term. let's get to reporters on biggest earnings stories we are covering, tom metcalf joins us to help digest some of the top lines from today's bank earnings. matthew bloxham also here to break down today's tech moves. it is a big week for european bank earnings with banco santander and barclays reporting on the last few minutes. what should we be watching out for them during this turbulent quarter? let's bring in u.k.'s -- bloomberg's u.k. fina

even if he keeps his position as pboc governor. you mentioned the economy, he did make a speech yesterday saying china's economy is resilient, he vowed to deepen economic ties internationally. china cannot develop in isolation, the world's development also needs china. we can ring up the video of hu jintao who sat next to xi jinping. he had to be ushered out of the great hall of people, aids come up behind him, tried to pull them out of the chair. she was reluctant to go. there was so much chatter in around the world why this happened. we do not know the real reason. state media says it was because of health issues, highly symbolic move a weekend when hu jintao's allies were swept to the side, hu jintao physically swept to the side. i will leave it at that. haidi: just extraordinary video for such a highly choreographed event. stephen engle joining us from hong kong. hedging for doom and gloom is fast for out of fashion in wall street after a historic route that is wiped out more than $1 trillion this year. let's bring in our life

but certainly we have an interesting contrast between the fed and the pboc. they could be going opposite directions in the future. david: i think it was goldman that had that latest forecast of a terminal rate of 5% come march. even as this week might be the last 75 basis point move from the fed, can jay powell actually signal that? following the inflation numbers we had on friday, how much room does he have to give markets an explicit signal around these? mark: you can certainly say that the fed has not finished hiking, but he can pour cold water on the idea that jumbo hikes are necessary every time. he can certainly say, as other central banks have done, is the most hawkish rate hiking is in the past, and we are watching data in the future and it may not require such a very large hike to go forward. people would then start pricing in smaller numbers 40's amber -- numbers for december. once the market does that, if the market is pricing for 25 to 50 basis points than he can send out fed speakers to endorse something along those lines so there is no shock by

the pboc government is not going to be there.t overnight, it feels like the audience is towards one person, president xi jinping. they kept talking about the party spirit. instead of trying to stabilize the market. at this point, we don't even know where the yuan or china government bonds will be going because the pboc government is going -- it is basically a mess up there. >> maybe we should be asking the question rather than where's the national team, who was the national team now? we are just over half an hour away from the opening in china and hong kong. david ingles joins us with what he is watching. stocks managing to find the floor, with the you want. >> 15,000, i know we like to talk about nice, round numbers. the reason i think that one was important is because the blowup up that we monday actually took out some nice round numbers and that actually took out a lot of output options. that access to the point shuli was talking about, volatility. the i'm sure you want is unfocused again, again moved by the allowable limit of

haidi: we know we are looking at a different set of preventing factors when it comes to the pboc andwhat is food inflation doing? kathleen: pour prices up 17%. how can you not see your cpi go up when core prices are surging? i am an avid consumer of pork. if you love any good in the prices go up, you keep buying it no matter what is happening. that's can't be a permanent situation, we have seen this with core prices in china before. that is much help put peak cpi up to two point 5%, not such a bad number, and you can see on this chart how, when you look at the headline, when you look at the food pi, what a difference this is making. ppis supposed to continue to fall on the consumer price index because commodity prices are falling for the chinese inflation pressure is that falling. the chinese inflation -- commodity prices are falling. the chinese inflation pressure is falling. haidi: bloomberg's kathleen hays. breaking news -- speaking of central-bank action and volatility out of the u.k., we are hearing from quasi that he has left imf talks early as their is a u-turn when it comes t

we are looking ahead as to what we might see from the pboc in terms of support. the party congress. when does that change the dial if we see a pivot from covid zero? enda: the party congress is the all-important gathering. it is not clear how much micro policy detail we might get out of it. there will surely be some signaling on what the authorities want for the economy. but, you know, it is unlikely. i think we have the signaling of eight major pivot on covid zero, which is channeling some of the activity underground. we have micro details on extra stimulus or support for the economy or specific measures at least, that usually comes in major meetings, not these conferences in december. you have to say the signaling and the commentary that comes out of the gathering will be very important. how much of a focus will he put on reviving the economy? will there be any hint of a potential move away from covid zero over the months ahead? it is unlikely we get specific details. it is more about the movement that comes out of the meeting or nothing else. juliette: chief a

sophia, given that we saw the pboc regulations coming together and rallying stability for the yuan, how expect the positivity to be? >> that's a good question. it is not really positivity, it is more recognition that the competition elation monday might've gone too far. just a capitulation monday might have gone too far. we will likely see some strength feed into the market in hong kong today. a note just landed from the morgan stanley team. jonathan gardner saying right now you need to acknowledge the enormous range of potential outcomes for chinese out -- outlooks. there is a huge difference and you are looking at 13% returns in the base case but what they are saying is is so difficult to value risk because right now there are so many different outcomes and it could go either way. kathleen: with their metrics, and assume what is the economy. we still have covid zero in place, not good for a lot of companies in china. markets seem to have had a huge reaction to the xi jinping congress speech and other willing to put it to the side. how does the team assess that? >> they are looking at

the pboc injected $70 billion monday via its one-year medium lending facility. the rate of the mlf was left unchanged, as expected. u.k. chancellor jeremy hunt has declined to rule out delaying by a year the prime minister's plan to cut the basic rate of income tax. such a move would amount to another u-turn on a key plank of prime minister's liz truss's many budget. hunt says he intends to show the government can account for every penny of its tax and spending plans. >> i am not taking anything off the table. i want to keep as many of those tax cuts i possibly can, because our long-term health depends on being a low tax economy and i very strongly believe that. vonnie: the european union's executive arm is planning a mechanism to curb price volatility on the biggest gas market place. it wants to prevent extreme price spikes to rein in the region's energy crisis. it would impose a dynamic price limit for transactions on the dutch title transfers facility, the benchmark for all gas traded on the continent. pakistan former prime minister imran khan won the majorit

the pboc has the ability to do more if it wants to. as does the government.ould caution -- i don't think they are looking for a return to rapid growth. the chinese government has a target for the economy this year and it will probably come in at 3% in terms of growth this year. i don't think they are looking to achieve that target. i think they are looking for reasonable growth. they will not do anything that is too aggressive. i think it will be more gradual. they will do what they can to support the economy on the housing market but do not expect fireworks from fiscal policy or monetary policy in china. it will be gradual steps. kathleen: looking down the road, this is not an immediate investment avenue but in the tech battle after the u.s. curb, that has to be important to build up the chip industry. will there be opportunities for investors? will try not follow through on this to a degree? >> the government is determined to push aggressively in the high technology space. it is in the e-commerce space because of the tightening of regulations in the last 12

yvonne: still ahead, the chinese renminbi sliding again in the pboc seems inclined to let it go. we will discuss that later on. plus, australia warns of growing debt and deficits, even as the labor government holds down spending in his first -- this is bloomberg. ♪ >> we likely have a recession in the u.s. going to have most likely a recession. we might be in a recession in europe. so until you get to that point that you see a change whether it is in labor, the demand-side, you're going to see central banks continue to move on that trajectory. >> the geopolitics with going to russia, ukraine, america, china, relationships of the western world. that would have me far more concerned as to whether it is more mild or severe recession. david: the bosses at goldman sachs and jp morgan talking about the global risks. still with us is alexis crow, global head of geopolitical investing and partner at pwc. thank you for sticking with us. against the backdrop of likely recession we are coming into in europe, this war in ukraine and you have skyhigh natural gas prices in europe, this winter

the pboc was trying so hard to stem depreciation of the currency.ou have a stabilization fund in taiwan. you have korea over the weekend intervening in the credit markets as well. a lot has been going on. let's bring back fred neuman, he is still with us. all these things we are hearing, does that buy them enough time to stabilize these markets until we see some sort of pivot from the fed? fred: the hope is you hang on just long enough until the fed stabilizes and signals it is done. we may get to that point next week. famously last week we had a suggestion that maybe the fed could signal a move towards a smaller incremental of rate hikes next week after they meet. if you just get to that point then of course it is enough. if we see the fed come out with a strong message next week saying we are going to do another big rate hike, then of course it is hard for these interim measures to really gain long-term traction. that is the risk here. i have to say though, fundamentally in these markets across asia, we are not looking at compromised financial sys

first, if you look at other central bank policies, whether it is the pboc, boj, other central banks,nt to defend the currency's aggressively because of concerns about instability and out those. second, when you look at the dollar come the fed has to think about whether the fed is pivoting because inflation is well under control, and we are in positive territory? that is not the case. there is a perception that we have a global slow down. if it is a global slow down, i would say that the market over time will react negatively and people will start to fear a u.s. slowdown rather than fed tightening and that's kind of dollar weakness is less positive for the global market. haidi: if we see the stabilization in currencies, let's be fair, the advantage that a lot of open trading economies are getting in asia from weaker economies can't be overstated, but pboc is getting data in that situation. helen: normally, it is the emerging-market currencies that are most pressured by the stronger dollar. but this year, a number of emerging-market currencies have held up ok, mainly because of a very

that being said, the pboc has been doing a good job in terms of managing the move higher.not defending any specific levels. there is not a lane in the sand kind of situation rather than them managing the volatility and liquidity, managing the speed at which the onshoring offshore yuan depreciates. for them that is the main objective. shery: especially if you have the party congress and you want stability, by policymakers, are you finding anything interesting coming out of president xi jinping's speech? something that could change your calculations on how you perceive the chinese markets? guest: unfortunately, no. nothing that is particularly informative for the markets. like last sunday or throughout this week. looking at the structure of the new standing committee and the politburo federal, in this week's decisions, that will be something to look out for. but we have to remember fundamentally that the party congress is about setting medium to long-term goals, five to 10 years. fx markets and bond markets do intend to react to those sorts of decisions. that being said, one

we have never gone beyond that for the offshore currency but an indication that the pboc is under pressure ahead of the party congress to keep that weakness in check, but now allowing it to reflect the true fundamentals of the economy. dani: thank you very much, annabelle droulers in hong kong keeping on top of all of the volatility there. let's take a look at things we are watching out for today. at 9:00 a.m. u.k. time we will have germany's ifo survey, one of the best indicators of growth. the business expectations balance is the main one to watch in there. shortly before 10:00 a.m., the boe's chief economist will speak at an event about the cost of living crisis. at 3:00 p.m. u.k. time, u.s. consumer confidence data which deteriorated as inflation and interest rate hikes remain headwinds to spending. we will have a whole bunch of earnings results throughout the day. we already had hsbc but also look out for microsoft, alphabet, gm, ups kicking off big tech earnings. this comes off of the back of apple saying they will be raising prices for some of those services. rishi sunak set to beco

the chinese yuan is sliding as the pboc loosens its currency grip.rency weekend to 7.31 per dollar. that is the weakest since 2007. we have to bring in damian sassower our. how far do you think beijing is willing to -- to let the yuan we can? damian: we can always say rmb. right now we are at 7.34. get there quickly based on what we are seeing and what our analysis tells us. we look at the onshore/offshore basis, it blew out to something on the order of 570 pips today. it is down to a more reasonable level, but when that basis expands, that is crisis levels. that is what we saw in 2020, back in 2018. that is cause for alarm and points to the fact there is going to be weakness ahead. if you look at dollar-yuan, risk reversals, it shows you there is a lot of people buying protection against further deterioration in the yuan relative to the dollar. that is what we are looking at. guy: a crisis for who? damian: anybody investing in china, but that is a great question. if you look at equity flows into china, this is owing to be the first year since stock

the pboc once again trying to stem the decline in its currency with a stronger fix. they also rolled over the mlf without rate, two .75%. a slightly stronger offshore your one, but city is saying -- offshore yuan, but that will continue to prop up the dollar. the yen, more verbal intervention from the likes of the top official candidate of the g20, and suzuki as well. no inclination we have seen any attempt to stem the decline, which is seen the yen touch a 32 year low. 150 insight, goldman saying that will happen soon. citi say 162 the dollar. others sang perhaps japan will be cautious about intervening without u.s. support. a pickup in yields, the 30 year touching 1.5% for the first time since 2015. dani: jules, thank you. juliette saly in singapore. let's look at the key things we are watching for this week. bank of america will be releasing their third quarter earnings report after wall street giants reported on friday. tomorrow, the latest findings from a german survey. the u.k. cpi reading for september. also last year's u.s. home sales figures. the week will r

but the pboc still sticking with support. a stronger fix for the onshore yuan. in terms of central bank actions, take a look at what is happening in the aussie kiwi this morning. these are two central banks pivoting in alternative direction on rates. you have the aussie rba staying more dovish. the rbnz sticking with a hawkish path. now could be the time to pivot. we are looking a little more positive for asx 200 futures. new zealand online to the upside. perhaps this comes down to one key fed official urging more caution on the outlook for rates. shery: we continue to watch that potential fed pivot. we seem to have moved away from that attentional case. at the same time market seem to have taken some optimism coming from the comments when it comes to being a little more cautious when it comes to federate heights. -- fed rate hikes. she had made similar comments last month. still right now the best case narrow is we will continue to see fed policy being restrictive and potentially a fourth straight 75 basis point increase. the google macro picture seat -- the gl

and the offshore yuan very close to that 7.20 level, and the weakness continuing with the pboc strengthening reference rate for a 30th consecutive session. take a look at how markets are trading at the moment. australian futures under pressure, down .3%. we are seeing kiwi stocks unchanged at the moment. we continue to fall the kiwi dollar, which has been rising marginally but still posting a monthly close below that 20 year trendline. we continue to see the u.s. dollar strength affecting the asian currencies. nikkei futures pointing slightly higher. plenty more to come. this is bloomberg. ♪ >> we have announced that we will be out by the end of the week. you have three days left, you have to get this done. >> the bank of england can talk tough but fundamentally they have to extend this. >> they are trying to hold things together as best they can. >> the confusion i think comes between the financial side of the bank of england and the monetary side, which are trying to do two different things. >> monetary and fiscal policy being across words with each other is a very dangerous cocktail for a

but for dollar china, i think it's the 34th day we've seen a stronger by from the pboc. has it done anything to change sentiment? >> i think the trend is clearly to the upside for dollar china. in fourth quarter, we could see recovery because of the fiscal stimulus, feeding through infrastructure investment could get better. but the general direction is for a weaker economy. so it is hard to turnaround for now. the fixing has been stuck at 7.1. that means giving the 2% ban, so the spot rate could be 7.25 or below for now. rishaad: everybody seems to dislike the yen right now. seeing it just going lower and lower and people wondering when the ministry of finance comes in. >> including those japanese retail traders pumping the money into economies with higher interest rates and adding to the weakening cycle. the carry trade looks wonderful at the moment. but you are right, everybody is watching carefully for the mof to give anymore indication that it thinks there's time to intervene or draw a line in the sand. i thought it was interesting in the last few days as they have

david: you have seen the pboc intervene, the bank of korea has intervened.banks in asia are intervening to stem the tide of the dollar strength. the catch is, it doesn't work, it only provides a temporary blip. unless the u.s. treasury involved as well. it's very tough to start the dollar strength against its fundamentals. treasury sector -- secretary, janet yellen, is in no hurry to join any intervention. even if they do continue intervention, it's a one-sided story and it is delaying the inevitable, which is further dollar strength at the moment. paul: fx rates a strategist david. let's get a look at the business flash headlines. renault in the final stages of concluding a deal with nissan. it would allow the french carmaker to proceed with a plan carveout of its electric nickel business -- vehicle business. both sides are set to sign a nonbinding agreement. renault leashes its ownership to nissan at 50%. apple shares turned negative after tech news outlet, the information reported it was cutting production of its iphone 14 plus. apple was backing off plan

this before but we are coming to the tail end of this historic dollar move in the bank of pan and pboc are basically playing for time until the market brings the dollar back off of the historic levels. lisa: does this mean that it doesn't matter what happens in europe this is entirely an fed story and peak inflation and the u.s. and it is not necessary to see a material towing mesh turning around in europe heading for a difficult moment? marc: i agree with that. there are two drivers. policy come everyone knows about that. what is less appreciated is there has been a serious deterioration of europe's trade balance as well as japan's. there is another factor weighing on the currency is the most immediate is if the fed announced today we were done, i think you would see the dollar dropped shortly. tom: the 10 year yield at 1.70%. we have moved 88 percent in my study of 2.05% is somewhat of a normal 10 year real yield. where is your number on that? what is a normal 10 year real yield? marc: to tell you the truth, i don't have a clue. [laughter] these things like real yields, you can't tou

the technocrats and he sacked the head of the csrc and the sec and he removed the person from the pbocthat i see it he installed a war cabinet and removed the people that people like steve schwartzman and larry fink talked about that were not focused on the reformers enough and we should be focused on them and not the hard liners. guess what all of the hard liners are in place now. >> the goose that lay the golden egg in china over the last five, ten years has been the free market reforms and sort of their version of capitalism. so to make this transition with this -- bringing a billion people into the middle class only happens through gdp growth. how is he going to -- how is he going to continue to make strides there, if he's, killing the goose that lay the golden egg because you're not going to get the same type of growth if you don't have market reforms? >> yeah. i don't know if you showed it on cnbc, joe, didyou guys watch the press conference with merrick garland and the usag and the fbi director wray? >> no. >> they indicted 13 people yesterday all focused on the chinese national