coming up next, more on the rbn impact on the q.with a jp -- the kiwi with a jp morgan analyst. this is bloomberg. ♪ >> time for morning calls ahead. focusing on taiwan, which reported a slower pace of industrial activity, still double digit growth. over at morgan stanley, they are saying there is a confluence of factors reiterating the underweight call for taiwan, slowing tech spending, and unsustainable retail trading boom. the bank has downgraded the june 2022 target to 16,000, as well as lowering the growth earnings forecast. we have seen foreign investors dumped taiwanese as well as korean equities, while piling into indian stocks. pulling up the board, australian earnings. focus on a melbourne based company which focuses on aluminum. shipping disruptions have increased the cost to transport. we have the downgrade to neutral on the outlook for the were dividends, higher and flatter margins. haidi: let's take a look at the broader commodities space, the wti expanding gains. we have ubs joining goldman sachs, expecting prices to

but first, the rbn's next meeting is live in october. we will get more from our conversation.omberg. ♪ haidi: the rbn says the decision to delay the start of a tightening cycle will force other central banks to shift timelines. they've given the clearest indication yet of a rate hike at the next meeting even if covid-19 remains in the community. >> we retain them right if not the obligation to move policy when we think is necessary. we can communicate in many different ways our monetary policy. our statement real -- outlines our views. how we see inflation performing. whoa it pushes off the course? we would have to be convinced that the supply side has suddenly been able to expand, and moving inflation increases, or the demand side for the economy has a significant turnaround, and that would mean fiscal policy is not doing its job. >> looking through july of next year, you can see the rates at just over 100 basis points from the rbn. is that something that gives you confidence in terms of how potentially the recovery plays out? dealing given the uncertainty of delta that is a

we saw the rbn hold. we have the bank of korea this week.re some pretty good early export data there. where you expecting from the bank of korea? guest: we are among growing minority and expecting to start hiking the policy rate by 25 basis points. it would be the first rate hike since november 2018. we have the export data. we have the growth numbers, which will be quite strong at 4%, as well as the bank of korea taking the opportunity to revise upward inflation numbers. so i think, of course, what we saw, rbn clinking last week was primarily because of tuition. which also korea's facing to a certain extent. but i think it is a matter of timing and redo think that the bank of korea is set for that move coming this thursday. it's when he five basis point hike is what we are expecting there. rishaad: lesser to china and have a look at what we are seeing at the beginning of the session. many roots -- many people are talking about a strong yuan, but we have seen a lot of forecasts being scattered. what is your take? guest: there is domestically

a nine-month low at the rbn hold off on raising rates. to the taliban leadership.ve returns, leadership returning to afghanistan. the militant group has pledged not to target neighboring countries at a press conference in kabul. they promised to build an inclusive government and protect the rights of women. >> god willing in accordancewith shrch sharia law, we will allow women to work. they will have an active presence. dani: at the same time the white house says it is in contact with the taliban to allow safe passage through the kabul airport. the u.s. is seeking to finish its vacuation by the end of august. >> we are engaging diplomatically with allies in different countries and the united nations. we are in contact with the taliban to ensure the safe passage of people to the antidepressant. dani: joining us now our guest. so what does the situation look like on the ground? >> on the ground it is -- developments happening. the the taliban leaders are back. what is expected next is an announcement of who is going to be in this who is going to be in charge. the tal

if we are looking at a central banks in general and we have seen the rbn will study and they did notrom that quarter percentage point last week, we are expecting that be ok to move later from half a percent. how much of a difference in economic impact to a quarter percent rate hike make in these asian economies? louis: that is a good question. people do all kinds of estimations and there will be -- i think, as often, with monetary policy, this is about are we moving towards a trend increase or not? this is about inflection point, when things start to matter. that 25 basis points by itself will not kill the economy but we are looking at central banks starting to signal, are we switching course? and what does that mean? as you mentioned, bank of korea is going to be interesting. the korean economy is a little bit -- it has two sides. manufacturing side, benefiting from a global economy. domestically, everything being disappointing. that will hold them back. shery: even the manufacturing side seems to be suffering from the lack of semiconductors globally, perhaps helping those semicondu

. >> we are also watching the rbn. >> of course, how could we not?t will make the manufacturing number all the more interesting. its last reading was something like 50.7. the thing about new zealand is that every number seems to be strong. everyone says they are going to raise that key rate. let me go through the list as we look at inflation expectations because you have second quarter inflation, 3.3%. no wonder the to your expectations are up to a seven-year high. employment is down to 4.0%. house prices are surging. almost 31% year-over-year in july. that is one more reason we are seeing those inflation expectations. if you have time for one more quick chart, there is almost three rate hikes. we have a nz -- a and z up 2 basis points. >> much more to come on haidi: we are taking a look at business. the pmi reading coming in for the month of july at 62.6, jumping from the previous reading. very comfortably above that line that demarcate's growth with contraction. we have seen resilience when it comes to the new zealand domestic economy despite order

you have no vested so happy to have you rusty brazile, rbn, my favorite sight in the morning. >> appreciategot to stay on this plug power, it's up three today, maybe go higher. "mad money" back for the break. >> announcer: coming up, there's no great fix for staying in fashion. can stitch fix style and profile their way to snug fit for investors and consumers? cramer's got the ceo, next ♪ ♪ ♪ ♪ ♪ ♪ hey google, turn up the heat. ♪ ♪ ♪ at cdw, we get whether you're at home, in the office or on the go, staying connected and secure is what keeps you productive. and no matter where you're working, our experts can help you implement a secure by design hp chrome enterprise solution. you'll benefit from built-in virus protection and advanced security management to help secure your device and your data while keeping you in close contact with all of your coworkers. ♪♪ millions of vulnerable americans struggle to get reliable witransportation coworkers. to their medical appointments. that's why i started medhaul. citi launched the impact fund to invest in both women and entrepreneurs of color like me,

the rbn went [indiscernible] two tightening policy . they will dial things back.hallenge ahead. if governments can keep societies open, they will complement the central banks and be the cause of monetary tightening. i think we will see more volatility ahead. tom: what does this mean for the yield curve? what do we need to see to see sustained, gradual increase and steepening of the yield curve? what needs to come to play to make that happen? geoff: it needs a sustained rise in investment demand. we are coalescing around the view that apart from government and fiscal stimulus, this will probably not happen. new and sustained infrastructure spending, and the u.s. will be needed as well. if we do not have that, the long end of the curve will struggle. or it is back to her we do not think inflation or reflation will happen again, which means long end yield curves will not happen for some time. that could be more worrying. where does demand come from? if not from governments, we do not have a source at this. people will rely on fiscal to get things moving again. anna:

the rbn said is a great example. the bank of korea is another example.ate hikes before the end of the year. bringing it back to this zero covid strategy. i think it does raise quite a bit of uncertainty. for those economies that are not yet prepared to live with the covid scenario on the ground for them, it means that they are vulnerable to even a small outbreak of covid, like we've seen in new zealand this week. that creates an enormous amount of market uncertainty in terms of trying to anticipate when the central bank will or won't move. i think the market was prepared as we were for a rate hike in new zealand this week. with the recent lockdowns that we've seen imposed, that has changed the calculus in the short-term. it creates quite a bit of unnecessary uncertainty. shery: you talk about enormous uncertainty. china with the extent of the regulatory crackdown, the target still unknown. at what point can you even say, you look at a chinese stock and say, it's adequately discounted now? eric: look, this is one of the big challenges for global equity ma

we see the rbn fed easing with the august meeting very much looking alive.corner we do have a oil prices under pressure. brent falling for a third session with concerns over the delta wrist, denting the outlook for the demand at recovery, and looking makes it at pricing with td security saying that if they are feeling the weight of a synchronize slowing of u.s. china growth. decking on stock movers, shares are jumping after dependent -- japan's biggest mover is forecasting record profits for the year on rising steel prices and demand, recovery expectation. shares are rising on the report card. bloomberg intel of it -- intelligence say it may topple bloomberg intelligence. sk innovation on the move off by more than 5%. this despite returning for the second quarter with them beating estimates by trying to split off its battery and oil emp distances. that is weighing on shares. we are looking at kick how gains. we saw some quarter earnings were we see shares fluctuating until after it was caught off in tuesday's downturn in asian gaming stocks. shery: tencent w