on rbnz calibrates meaningful arrivals until 2022.degree that our view is right and we achieve herd immunity in new zealand through the course of the next year, borders open up, pressure for the rbnz to do negative rates should ease. that should be a kiwi dollar positive dynamic at the same time the rba is turning more dovish. that is where the balance of risks lie at the moment. haidi: always appreciate your time. andrew boak there. westpac says it is paying a acord $1.3 billion to settle money-laundering case. we get the details next. this is bloomberg. ♪ haidi: we have breaking news from that white house press conference. white house economic advisor larry kudlow saying he doesn't think there is a need for another broad stimulus package, that there will be targeted measures only, that they need to be smart about those measures. this coming on a day where we had a parade of federal reserve officials stressing more fiscal stimulus is critical. chair powell calling fiscal stimulus unequal by anything else. larry kudlow saying they wou

the rbnz staying packed as expected. they are ready for negative rates.nt and business closures. the nifty pointing to a higher open, currently up .4%. the dollar continues to rise along with real yields. the dollar index hitting a one month high. dollar trade is beginning to price in risk. we have the yuan heading for the best quarter since 2009. currently lower by .2%. we have the pboc fixing rates lower for a second day. headlinesust a few coming through. one is from huawei. it's the deputy chairman. seem huawei is still willing to buy from u.s. suppliers paid we need chips for it a lot of the networking equipment. fujifilm will be applying for radio tory approval as early as october -- regulatory approval as early as october. trialsactually suspended on this particular medication, if you will. beganed its delay and clinical tests as of yesterday. move to commodities and have a look at iron ore futures on the way down. supplies weigh rising against the recovery taking place in china. concerns over demand are being compounded by the prospect of rising a

the rbnz is.here , down tobig surprise 0.25%. that is the white line. how the two-year note yield is seeming to anticipate or open the door to those negative rates. and finance minister grant robinson, a great interview we had right here on bloomberg television, saying the rbnz at gdp reboundr the which he is looking for. he said that people thought maybe they will not sound so easy at this meeting. he said nevertheless they will consider that in a negative rate decision in 2021. if things pick up, does that mean they will not go ahead to negative rates? for now, they are really sitting back. number one you have the october 17 election just around the corner. maybe do not want to make any big moves at of that. that is what central banks are often seen doing. and this is an interim policy meeting. it is a november meeting where they have the opportunity to really lay out what they are going to do, how seriously negative rates are being considered. surprised a lot of people around the world by being ready, willing, maybe not able yet to embrace just that.

the bank of thailand and the rbnz has posted decisions out on wednesday.ther expected to change policy. they could highlight the growing chance of the rates. we are joined now by moody's analytic economists. we have been increasingly hearing a drumbeat towards an inevitability of negative rates come by early next year when it comes to new zealand. doesn't highlight the extremes the central bank is having to go through for these extraordinary monetary policy measures? are we still going to see the effectiveness for their actions? >> i agree with you. have been pushed to their limits by the various economic challenges used by the covid-19 pandemic. and it is true that nearly all central banks have settled and lowered their interest rates to historically lower. but having said that, the zealand, whyof new there is a lot of [indiscernible] interest rates, the moody's analytics stalled is -- cashficient gas rate rate will be held at 0.25% level. we are certainly monitoring developments and communications by the central bank very closely, and we are not dismissi

here closer to home in new ofland, the discussion breaks from rbnz is creating some premium advantage comes to trading in aussie kiwi this morning. city futures modestly positive, setting up for a flat, just a little higher at the citi open. let's turn to japan where the ruling party kicks off its campaign for a new leader later. continuing to assess shinzo abe's legacy. andreea joins us now. positive reviews for his corporate governance reforms. andreea: that's right. investors are held hurting the support ushered in by shinzo abe. you have seen the topics almost abele in the 7.5 years that has been in power. among the things he did better notable -- that are notable is unleash constitutional investors to increase profitability and capital efficiency. this is a country where traditional investors have been very hands-off. he's created this corporate governance for companies. what this did is really make japanese companies become more anditable, less insular more rewarding as an investment. we have seen profit margins and the topix index higher at the end of last year compared to the

do the numbers today -- does it move the needle when it comes to the rbnz? a lot of expectation we could go into negative rates by february next year. >> the reserve bank has committed to not changing the ocr until march. we don't think they will want to undermine their forward guidance. given how important it will be in the years ahead. fromng through this noise the lockdown, by the end of the year, the fiscal stimulus will be winding back very significantly, and the hit to tourism will really be being felt. this is really a summer story are -- tourist arrivals it was not that much of a cash flow. come summer, it will be very noticeable. so that's why we think that the economy will be showing renewed weakness by the end of the year. why we are expecting to take further action. >> you have downgraded your third-quarter gdp forecast. how big of a hit will the new zealand economy get, especially with these renewed restrictions. >> the renewed lockdown is very much lockdown like compared to the last time. short-term or severe. change theing to fact that q3 gdp

we were focusing on the rbnz meeting.w a huge run-up in australian stocks while you saw the yield on australia's year fall to a record low. bill evans saying the rba will cut rates at its october meeting in line with the government unveiling its budget plan and that they will move their bond yield target to the same level. this came hot on the heels of the government selling bonds in a record sale today. the aussie fell to its lowest level since july 24 making it the worst performing g10 currency. anna: thank you very much. let's get a bloomberg first word news update. on u.k.ure is rising sunak.lor rishi the treasury has spent over 100 billion pounds on wage subsidies and business, but this is due to end. currents warned the level of support is not sustainable. 's plans to replace ruth bader ginsburg are gaining momentum. mitt romney says he supports moving forward with the confirmation vote. democratbut quash is hopes of stalling a nominee until inauguration day. the u.s. house has passed a stopgap funding bill after a

rbnz rate decision holding steady. potential of cash rates going into the negative. adding to that global selloff as downturnue to see more over u.s. stimulus package. we have seen a parade of fed officials asking for the package in order to get the u.s. economy into a solid recovery. fed chair richard clarinet speaking to bloomberg earlier saying the central bank will itps rates near zero until achieves 2% inflation and full employment. >> what we are saying quite simply is perhaps in a normal recession or if we were back in february, obviously getting to 2% and moderately exceeding 2% would be in our forecast horizon. because of the depth of the shock, the economy as to recover. that recovery relative to the last downturn will occur within about three, three plus years. i do we get to that point, overshooting is just an academic point. we went to get the economy to 2% maximum emplacement along with full employment. we think that can happen. fund manager after fund manager as come on the show and says we are at risk of creating an asset price bubble. how does that f

. -- rbnz. francine: certain -- rodrigo: certainly.on of other central banks, and in particular, the ecb, the big one that has got a lot of attention recently in the last couple of days. our sense is that the commentary coming from the ecb, there is a concern that spurred the gains and there are significant gains in the u.s. dollar will complicate their own sort of objective of lifting inflation in europe. but at this stage, it's just a concern, something they are looking at, not to look beyond that and say this is the start of a currency war. we think it's too early for that. but if we were to receive another 10% decline in the u.s. dollar, i think it will be a major concern. but for now, our sense is this is a topic for discussion, but not a topic for action, if you like, by the ecb, especially for next week's meeting. haidi: we've also seen a strengthening of the yuan. how does that play, particularly as we go into election season in the u.s.? does that change your year and view on where r&d ends? rodrigo: i suppose a review has 6.8