shery: we are watching the pboc because of policy stance.one-year lending rate? >> today there will be a medium term lending facility loan maturing today so we will see if pboc will roll it over. based on what we heard from economists the pboc is expected to offer a net injection but the interest rate will likely be kept unchanged. to 7.5%. the reason is pboc has just produced the amount reserved must be help by bank. it takes time to show impact on the economy. based on what we heard from bloomberg economists the view is pboc still likely to cut the rate by 20 basis points later this year. the economy has been recovering after a bunch of policy taken to stimulate growth, however there are still signs of weakness and the property market demand remains uncertain and consumers are still wary of spending following three years of covid restrictions so there might be more room for spin -- for stimulus down the road so today may be that will be no change in interest rates but down the road there might be certain reduction . shery: charlie with the

it gives the pboc room to cut interest rates.entral bank has been very timid when it comes to stimulus, compared to what we saw during the pandemic. analysts are calling for a rate cut in q2. we could get signs of easing next week, we get the data for april and the pboc's monthly lending operations, so they could cut interest rates then. i would say it is too soon. wait and see is still very much the name of the game for the pboc, but the data shows it doesn't need to do that anymore. tom: potential rate cut coming through from the pboc. that is one powerful policy tools they could reach for. are there other steps that the finance ministry or pboc could be taking to support growth? and as you say, move or at least rebalance that demand between services and goods. >> we could get tax breaks. we could get -- it seems consumers are waiting for some kind of incentive to buy big-ticket items like cars. car sales have been incredibly weak in china. stuff like washing machines and dishwashers. people are reluctant to spend on that. they

tom: garfield reynolds on a measured approach by the pboc. let's stick with the china story more broadly, tensions set to dominate g7 meetings in japan the next two days. the u.s. has said one of its guided missile destroyers conducted a transit of the taiwan strait over the weekend. for more, our editor, who is at the g7. what are the expected talking points? dan: basically they are trying to express unity in their approach to china. of course we had french president mccone in beijing recently, where he made some comments that called into question whether europe would indeed involved in taiwan if it was an issue. since then, we've had various backlash to that, and yesterday there was a briefing from the eu policy chief where he tried to say despite what people are saying, whether you call it strategic attorney or something else, europe is going to be a player geopolitically in the indo pacific and that means we are going to have to be concerned with what goes on in taiwan and in the taiwan strait. at the g20 we are seeing a push to paper ove

it is a letter to the pboc.eviously to cut rates in the second quarter. we think the psc's part is coming. >> thank you david. there was david to. every agency senior economist. let's talk a little bit more about ai now. alibaba has become the latest tech scientific name at captivity. the company is integrated it's ai model to its smart speakers as well as office chat software. this you have made the announcement during an event on tuesday. chris we hope to incorporate the large ai model into all of alibaba's business in the future but we also hope this can raise the intelligence of our eight -- ai technology to a higher level. >> let's get them from our asian tech editor. let's start on the alibaba service. when a rehearing about this whole ai fun for them? >> these announcements are coming fast and furious at this point. i think you can take it from the fact that the ceo of an e-commerce company came out and talked about this -- these ai services directly. they have jumped into this after open ai and jackie pu

we did have the pboc pulling back in terms of the liquidity. they pumped liquidity into the system, but at the lowest levels in's november, signaling their view this is a rebounding economy. futures in the u.s. looking at gains of 0.2%. now just a move two basis points for the u.s. two year yield. the pound is a kickback for sterling. it is the best performing developed market fx so far year to date. natwest and hsbc in 1.30 on the pound. christine lagarde says she does not foresee the u.s. default and on its debts, saying such an outcome would have dire consequences around the world. >> i have huge confidence in the united states. ever since my year in this country, this city in 1974, i have had confidence in this country, and i cannot believe they would let such a major disaster happen. tom: christine lagarde speaking on risks around the debt ceiling. let's bring kristine aquino. good morning. the argument for many is that the u.s. will not default on its debt, they will never cross that line. some say the politics have changed. what is the r

the pboc saying five and a bit percent growth is achievable. we talked about the strong dollar, no longer the case. the dollar index at 12 month low, lifting asian currencies. the yuan, 0.8% higher. and gains for the chinese yuan, we are keeping track of the single or in particular weakness today, it is down 0.3%. the mes after five straight moves. rishaad: thought brings you to rising global risks as well, growth risk and also talking perhaps more salient lee about ebbing inflation. the exchange rate is its main policy tool. control inflation within the territory of the city state. that decision coming at a time when gdp data shows the intent -- economy contracted more than they anticipated. the kospi, we have had a global fund buying with anticipation that the kospi could be raised up to valid status as opposed to emerging-market status. 20 days of buying of the kospi which is nearing able run. driving that year to date, the biggest winners have been the nonmetallic the neural index within the kospi and iron metal. haslinda: we also have to b

the pboc vowing to stave off risks to lenders.clusively to the chief executive of hcl tech on how they manage to beat expectationnlike its bigger competitors tsc and emphasis. >> manufactoring and labor coming in weaker than expected against this economic slowdown, we have a fed that is bent on raising rates. the impact on financial condition. read pretty much across the board. csi 300 down .6%, despite the fact that more banks are raising their forecast for china's gdp. we had the likes of goma raising the estimates for the year. the recovery in china has been pretty uneven. csi 300 down .3%, hong kong hsi also trading lower but one outperformer, sunak, surging on the back of a restructuring plan. we keep talking about the dollar. it is poised for a weekly game. seeing asian currencies under pressure. won down .5%, renminbi also down, the aussie also down .1%. keeping a close eye on the yen in the lead up to that boj meeting next week. it will be the first presided by the governor ueda, bets are he will tweak ycc. commodities low

david: more on this news coming through here, it should be coming from the statement out of the pboc., that's another big story. them looking to plug that funding. the central bank governor, three things, the economy stabilizing and rebounding. it will remain in state a low level. forward-looking indicator, the property market is showing positive changes. that's alluding to the early signs that we have taken a look at the data. it has shown early signs of picking up. on top you have the banks and the other big story. and then looking to raise quite a bit of cash in the fixed income space. about 6 billion to plug that funding that. lots ahead, it's busy, it's friday. the weekend can wait. plenty more ahead. this is bloomberg. ♪ >> it's very important for the regulator to have a deep understanding of the industry and i can say, without offending anybody, most regulators don't have industry experience. >> and hong kong received a good sign. the regulator here is very open and it goes into the industry. and we are very excited to continue to have the commitment. >> it's a serious business

these are the pboc digital yuan. this is not private companies thriving in mainland >> they are private participation in blockchain. the blockchain network is a public-private partnership the architect behind that is a hong kong based company. >> with hong kong allowing more cr crypto focused firms and other trading platforms to register, do you think that is a pre-requisite to potentially more open policy toward crypto firms on the mainland? >> you have to separate the two. in hong kong, we are allowing crypto exchange to come to hong kong with the framework. it brings transparency and also assurance that all of the products are properly licensed if they are to be offered to retail customers >> what does hong kong say to digital asset companies? we want to be a hub for web 3.0 and so has london and uk and dubai and singapore and other places what differentiates hong kong? >> hong kong is a pubhub for financial markets. in asia, hong kong leads the pack with this size, we also have a as super connecter status we are

the pboc governor says the days of regular fx interventions are largely over. of course we do not often hear from him, so when he does speak we are focusing very intently on the message. annabelle: that's right. these are some rare words we got from him. we have been in washington attending the world bank and imf spring meetings but on saturday he spoke at the peterson institute and what is really grabbing people's attention from those comments is what he set around the yuan. you mentioned the headline, that the pboc e says has retreated from regular intervention in recent years. is it freely convertible? no, he did not say that, but said it is primarily determined by the market. he did not really give a date. he was asked when it could be. from his own perspective he said when you put the market against the central bank,'s now get ovee quinn. vonnie: vladimir putin has praised ties between the militaries of russia and china during a meeting with a top official from beijing. the chinese defense minister's visit to moscow becomes a month after president xi jinpi

we will talk more about the pboc later.k about the dollar given how we have reached levels whether it is the euro breaking above 110, the pound, no one thought we could hit 124. is there a further unwind in the stallard don't -- this dollar downturn trent? >> i think at least in the short term let's divide it up into the next few weeks relative to the second half of the year. over the next couple of weeks i think the dollar will gain back a little bit of grout. the reason for that is when we look at earnings which are kicking off over the next couple of weeks, it looks as if u.s. companies have managed to guide the market into a pessimistic sort of state. consequently, what we have seen so far in earnings is things have started to look a little better than some analysts have expected. secondly, from a growth perspective, while we think the high level indicators in the u.s. continue to deteriorate, what we will see a bottom up is the relative resilience particularly of the labor market over the next month or so. as we get in

the pboc said it will ensure rates are appropriate. the head of the monetary policy department said risks need serious attention as china draws lessons from the recent u.s. banking turmoil and said inflation will pick up in the coming months as slowing consumer prices trigger worries about domestic demand. vonnie: china is planning to carry out military drills off its coast and in the south china sea, coming amid tensions with taiwan and the u.s. a statement by chinese officials warned that major military activity near the port city until noon tuesday would occur. meanwhile, the u.s.-philippines are holding military exercises through next week. space x attempt to send it starship rocket into space ended in a blast after an engine failure forced it to blow up the lunch or shortly after liftoff. it was meant to show the vehicle could reach space and complete a partial orbit that earth. shortly after the explosion, elon musk tweeted the next test launch will take place in a few months. global news powered by a 2400 journalists and analyst

even the pboc has already signaled that they will start pulling back or that they may start pulling backn the loans they have been given to small businesses to weather this transitional period. so we don't know the exact date of the meetings, but this is the last week of april. i am not going out on a limb to say that it will happen this week. but we will find the readout and we will have to read between the lines to see if they will shift away from stimulus to more reform, and also whether they will continue to boost the rhetoric we have heard about boosting the private sector and boosting investment in advanced technology, in light of course of the pressure from the united states and the cutting off of those advanced chips from the united states. and also, any more support from the -- for the property sector. or do they dial back? haidi: seems like beijing was quick to distance themselves from the comments made by its ambassador to france? stephen: debts rise, the ambassador essentially stepped in it when he said to a french television network friday that in his estimation -- that is h

there's no reason for the pboc to be worried about inflation suddenly jumping out of its box. they can take a subdued approach to things and that gives investors more confidence they can take a longer term view. the context with some of the recent pmi data we've seen, especially the services report, everybody is punchy. the highest levels in several years. yes, maybe some people will be disappointed china's economy is not rebounding as fast as they hoped but certainly the reopening trade is still in place and there's probably quite a way for it to go. dani: and the easing trade from china. this is my elegant segue. it is also continued easing from japan. the new governor giving his first presser. is this the same policy as kuroda and no change? mark: i don't think so. it is his first public appearance and it is unlikely he wants rock about -- rock the boat the first day out. but if you look at some of the things he said, that parts of japanese monetary policy are hard to understand. i think that is his way of saying what are we still doing with yield curve control. also yield

. >>> jay powell meeting with the people's bank of china that the pboc governor came together tuesdaytings in washington, d.c. >>> tesla cutting prices in germany and france cuts on all versions of the model 3 and model s and model y. >>> california officials taking action against tesla in court yesterday in the attempt to force the company to comply with the state investigation into the harassment and discrimination against the group of manufacturing employees. >>> in europe, european provider a -- privacy watchdogs marking a first step on common policy on privacy rules around a.i >>> and a deal close to the making for the commanders in a record price for the north american sports franchise. >>> we have march retail sales out at 8:30 a.m. followed by industrial production at 9:15 a.m. fed governor christopher waller is speaking before the opening bell reports from jpmorgan chase and citigroup and wells fargo and united health and blackrock. ceo larry fink is on "sidewalk -- "squawk on the street" at 10:00 a.m. > we have courtney doming with us today to talk about the trading day. wha

it reminds me that a week ago, china's central bank, the pboc, said they would dial back support becausenomy has stabilized. effective message. it suggests to me that the policymakers underestimated the challenge they are facing to boost the economy. the second possibility is that they are trying to play down expectations because they realize they are incapable to meet expectations. either scenario so we'll investors should be more cautious and assess risk, especially those who believe challenge reopening is a big catalyst for this year. haidi: how enduring is that catalyst when you see bifurcation in terms of where we are seeing recovery? how long lasting do these consumer and services plays go for? -- going forth? hebe: if you are looking at consumer demand, it is a good example. we have seen inflation picking up in january and now coming down. manufacturing pmi yesterday headed into the construction area. that is all suggesting that underlying demand is not strong enough to support the expectation that the economy could recover by 2023. in economic recovery, it is still not picking up

the pboc is already signaling they will maybe start pulling back on some of the small and mend the 11thedium-sized loans they offered during the pandemic. we will have to read the language from any readout that we get from the closed door meeting that will be held in beijing this week to see if there is a shift to more emphasis on the quality of growth. rishaad: the think we have been seeing is about reopening trend. >> the economic growth is picking up, but the growth was uneven, led by the consumer rebound. this is something china investors have not been familiar with. there has been questions on the sustainability and we are thinking of the property market a politicization -- property market stabilization. the second is there has been complacency in the markets. the much-anticipated u.s. led recession has not materialized. there has been less urgency for investors to move to china. lastly, but geopolitical tensions continue to weigh on the markets. the risks are becoming embedded in the risk premium. haslinda: how best to play china's reopening story? >> we have seen some consolidati

when it comes to what the pboc is saying, trust us, we got this.g at the data to see where the recovery is going, so far we are fine with it. that trust is lacking, when it comes to markets, let's not underestimate how damaging that has been for confidence. a stimulus would be straightforward, but the rhetoric is less so. rishaad: you talk to him, he was saying, look at where the earnings are going, pretty good. people are going to run out of excuses not to buy chinese equity. >> every time that something comes true, in october people were saying the reopening is never going to happen. in november, they were saying the international was never going to happen. there was a negativity around the consumption recovery, but it was stronger than expected. none of that has come true. the negative bias in the market, he was saying it will take time. the evidence is there. what will convince markets is if this evidence comes true every month. it is consistency and a track record. what we don't know is how long it will take. david: a lot to look forward to. t

raymond: raymond: at the moment, if a look at the renminbi, the report published by the pboc tells mesettled in the renminbi last year. the past few weeks, we have seen lots of countries expressing interest in using the renminbi to settle their lateral trade with china. saudi arabia and brazil in particular. they were asking me about would b -- about what would be the implications of petrodollar recycling and whether we would see a petro-yuan. trade settlement is one thing. the other side of the question is whether china has enough for that exporting countries to recycle their export process so they can induce them to use the renminbi to settle trade. overall, i don't expect that will be a complete and entire de-dollarization. more and more countries will join and they will start to consider whether to introduce the yuan to do trade with china. shery: good to have you with us, raymond yeung, chief greater china economist at anz. let's see how the markets are performing in the early asian session. annabelle: it's quite interesting when you look at all the optimism around china's econom

play out, we still feel that the people's bank of going to lean against any fast appreciation on the pboc'selated basket. we're holding and below's -- below 100. from that perspective it will take time. look for relative performers on growth or on carry, that is the indian rupee in the indonesian rupee. yvonne: ok, claudio hold on a second. we are flushing live pictures out of australia with the rba governor, speaking on the back of the hold we saw from the rba. these are -- what we are hearing from the speech so far, it does not imply rate hikes are over. that is what we are hearing. the aussie three year yield, that is holding the drop after we heard some of lowe's comments. he is fleshing out a chart about inflation. when it comes to the aussie, has to do with the china story as well. i'm wondering, how -- one are we likely to see the reopening story support some of these currencies that do or have exposure to china? it seems like when it comes to the aussie there is that autumn got process coming out of the currency too. >> yes. absolutely. clearly, there is well-established charged, if

pboc has indicated it might pull back on some of the loans to small businesses that were made over theast new year's through the pandemic also, we surely know that the local government does not have a good debt situation. record levels of debt. they do not have the capacity to offer tax breaks going forward and stimulus measures, so perhaps we will see stimulus taken off and then again rv emphasis upon areas of growth for the chinese economy. that would be the economy, private sector. perhaps any words on the property sector of course. and increased jobs is going to be key so we will have to wait and see with the readout will be from the april meeting. haidi: we were following this closely yesterday. i'm wondering if it was a reflection of beijing's views on controversial comments made by the ambassador to france? there has been some distancing here. stephen: one thing i asked repeatedly yesterday when i covered the story, where these comments by the chinese ambassador to france -- was he speaking out of turn? was he going rogue? did he misspeak or is this a change in policy from beiji

china came in at the level of the pboc governor and the minister of finance. discussion and there were some agreements. there was agreements that needed to be more timeliness of the launching into a restructuring process. there needed to be data sharing. can we get the data earlier. that hasn't been the tradition that that's going to be. also a working group which is important in the technicalities of burden sharing. how do you have equal birding -- burden sharing. so that they all participate in the restructuring process in the data. this is important to the people in developing countries because they are paying these large not low interest rate coming from market radar above market rate and it means it's draining the countries of what they need for nutrition, for health and education, for climate adaptation. >> do you need to see more? >> this weekend it was mentioned yesterday there were big meetings so we had the g20 meeting with the g7 meeting of finance ministers, the development committee, the governors of the world bank and expressed strong support for