sophie: this is the rbnz's financial stability report.e uncertainty for the new zealand economy. kiwi stocks lower by six times the 1%. the kiwi dollar pairing from an earlier jump sparked by the surprise beat in the first quarter jobs data. this as unemployment came down. the labor market still has some way to go. ozzie futures are pointing lower. the outlook for aussie stocks looking more optimistic. jp morgan raising its target to 7500. gains of 7%. more than double what we have seen for the msci aipac index. australian stock correlations with commodities a big factor with the raw material companies the second-biggest rating on the australian gauge. switching out the chart, the commodities rally has been broad. the cyclical recovery boosts demand for everything from energy to metals and agricultural goods. with this momentum, that has pushed the commodity price gauge 211 year highs. we are in overheated territory at the highest level in 13 years. shery: for more on the outlook on commodities, we are joined by the founder and ceo of van

we are looking to adrian, the head of the rbnz speaking on what this means.ld be more support for the kiwi dollar. plenty more to come. this is bloomberg. ♪ >> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. ♪ emily: i'm emily chang in san francisco, this is "bloomberg technology." coming up, the washington dc attorney general slaps amazon with an antitrust suit, accusing

were you trying to make sure the markets were on the same page as the rbnz?e are always doing our very best to provide some guidance, some forward-looking markers for the public to be able to see, including financial markets, around how we see the economy unfolding, and hence, conditional on all of that, what we may need to do regarding monetary policy. so, yes, we have become confident around a central projection, and that projection is one where we see inflation pressures finally, i would say, normalizing, and one where we hopefully can be normalizing the level of interest rates back to a more neutral level. there is a long time between now and the middle of next year, as we have seen, but that is our best foot forward at this point. kathleen: is the virus or vaccines, new zealand's success at fighting the pandemic, is this the main thing that is opening the door to saying, maybe we could be hiking rates again? it is an optimistic -- if an optimistic scenario comes true? adrian: without a doubt, covid-19 helps implications -- they are the number one drivers

they deliver a new form of guidance from the rbnz.ng rates may well rise in 2022 in the second half. that is something they are not calling her with guidance that they are resetting the agenda. bank of canada, bank of england. the dollar is at a year to date low. they are resetting a quiet short dollar position. government bonds taking the tapering discussion very much in stride. let's turn our attention to geopolitics. antony blinken reiterated washington's commitment to israel's right to self-defense. in talks with benjamin netanyahu in jerusalem. lincoln pledged u.s. funds for reconstruction efforts in gaza. >> the united states will work to rally international support around that effort while also making our own significant contributions including some i will announce later today. we will work with our partners, closely with all to ensure that hamas does not benefit from the reconstruction assistance. at the same time, we need to work to expand opportunity for palestinians in gaza and the west bank including by strengthening the p

the kiwi dollar has given up the gains we saw yesterday, sparked by the rbnz's projections so the kiwi dollar back below 73. a head china's industrial profits due this thursday, the offshore yuan holding below 639, with activity showing traders are looking for a move below 635 potentially. shery: we are watching the trade front on negotiations could happen very soon with u.s. trade representative katherine tai expected to hold her first discussions with counterparts in beijing as early as tonight. the importance of tariff rollbacks as part of the next steps in trade talks. for more, let's bring in tom mackenzie in beijing. what is the u.s. hoping to achieve with these talks? tom: katherine tai has said previously that she wants to have policy continuity. she wants to build on this trade deal that was negotiated by the trump administration. she wants to use that as the platform to encourage more trade deals in china while acknowledging structural changes will continue to be challenging. she wants to check in on commitments that china has made around this deal and see that it is living u

rbnz signaling a rate hike might be on the horizon.iwi set for the first weekly rise although it is on the backflip on this friday. quibi gains -- kiwi gains still on the horizon. the aussie qb dollar --kiwi ahead of the meeting. up .3 of 1% and oil prices are getting, brent above $69 eyeing that $70 a barrel mark with a crude set for another month again, the fourth 20 rise of this year. in the offshore yuan is had a stellar week as well. cnh back above 637 as we had the pboc cautioning against one-sided expectations, and capital flows to the mainland have felt was the csi 300 to a march after eight four taking with the index at for the best week since the winter new reopened and we are watching earnings due on friday and g date logistics making its debut in hong kong. shery: we have breaking news at the moment, the japanese government is seeking to extend the virus emergency in tokyo and other areas. remember this virus emergency has been extended across the country many different prefectures across japan as we continue to see the ris

there is a warning shot being fired by the rbnz.t of the world is paying closer attention to the ecb and the fed. they are staying adamantly dovish. anna: new zealand's dollar up, the australian dollar up. now on the global chip conversation, taiwan is morning unless he gets more vaccines, the world's shortage of semiconductors could be worse. cisco's chairman says the u.s. and europe should examine public-private partnerships to address the chip shortage is. -- shortages. >> the supply chain situation was one, we had to make a decision. as you know, the analysts put together what they thought the eps guide would be. we came in three cents below that. the reality is we are spending the money in our supply chain take care of our customers now. that is a decision we made. given the business momentum, we did not want to take on a lot of other costs. we felt it would be the long -- the wrong decision long-term. we took a little bit after hours. the industrial community understood why we did what we did and what we are thinking for the f

kiwi stocks gaining some ground ahead of the rbnz decision.ooking for any tapering potentially from governors lady today. the dollar in focus. it has slipped to a january lowl , while trading at six year lows. that is why the yuan is trading at a three year high. we will watch the tolerance for that yuan strength. while we are seeing the dollar under pressure, turning up the board on the terminal, we are seeing gold gains. it reversed the year-to-date losses with trading at more than four month highs, holding around $1900. bmo capital saying we could see it test resistance level at $1960. looking at the chart on the terminal, yields on 10 and 30 year treasuries at the two week lows. pulling up the chart right now, as you can see, benchmark rates falling below 160. this as we saw the u.s. consumer outlook soft into a three year low. new home sales in the u.s. fell by more than expected in april. going forward, when it comes to the outlook for u.s. trade, our colleague alice andrus sees a test of $153 over the next few days. shery: rising u.s. i

we had the rbnz in its report saying it could potentially increase restrictions on lending conditions. we will speak with the ceos about those results on the outlook. >> in the u.s., president biden set a target of 70% of u.s. adults receiving at least one dose of covid-19 vaccine by july 4. he said he is aiming for 160 million adults vaccinated by independence day. for a look at one u.s. state, our colleague david westin is standing by with a special guest. david: david: we want to welcome radio listeners as well. we are joined by new jersey governor phil murphy. you are redefining a beer chaser in new jersey, not on the side of vodka or whiskey, but following a vaccine. >> it is good to be with you. that is part of our proactive outreach to get 4.7 million citizens vaccinated by the end of june. we had a supply-demand in balance for many months, far more demand than supply, and we knew it would come to this moment, and we are here. that balance started to move in the other direction, so we need a whole series of steps. a shot and beer is one of several initiatives we launched in eve

the kiwi dollar above 73, following the rb and z'-- following the rbnz.e may see tightening by the middle to late next year. we are seeing the korean won ahead of the ok decision. we will see if they raise the growth and inflation targets. while we may see improving outlooks, korea and japan cut their assessment for consumption and business conditions. profits are due this thursday. checking on the renminbi, the offshore rate below that 640 handle after breaching the level with the onshore yuan yesterday. seeing a move toward 630 for the currency. the pboc will likely mitigate the rally on china's exports. i do not see the renminbi moving far from that 640 level. dollar depreciation will moderate. the u.s. is seeing the tightening shift globally. haidi: let's get back to one of our top stories. the u.s. trade representative expecting to hold discussions with her chinese counterpart in the coming hours. china is stressing the importance of tariff rollbacks. our white house reporter in washington, and our markets coanchor, tom mackenzie. what do we know abo

we are seeing bankers check of that, including the rbnz, that inflation is a temporary factor, and rates longer to benefit the economy. >> yes, one person saying it is premature to taper bond buying purchases. he spoke to kathleen hays about how the data has a long wait to go. >> we are expecting the we get better employment reports and gdp reports, but so far we have one gdp report and one employment report that are good, so i think we need to have more time to make sure labor markets are improving as we hope they will, and continue to make progress on a sustainable 2% inflation rate. once we make more progress, it becomes the time to talk about when we should taper, but probably premature at this point. we only had some data. i am confident that economy will improve, but our operating monetary policy framework is focus on outcomes, not just forecasts, and today, we have had limited outcomes. kathleen: it does seem like an optimistic message, and when you look at the jobs created so far, what we saw in that first report with the february report and adp jobs, that is two jobs in two mont

rbc -- rbnz buying bonds. china is setting prices higher.1%, 65-37. -- 65.37. >> this is an encouraging sign for the dozens of developing countries relying on the chinese shot. an exclusive interview with bloomberg has him saying there was growing evidence that corona vaccines were -- coronavac is becoming better when applied to the real world. >> the more important data is mass used in the real world. we now have real-world data in chilly where tens of thousands of people have been inoculated -- chile where tens of thousands of people have been inoculated. the result and the data we have from clinical trials will allow the world to judge our vaccine copperheads of the -- copperheads of -- comp rehensively. >> coronavac does bring down instances of severe disease and death. cases are rising in chile again. what is your response? >> sinovac was dissed bit it from all the older groups to the younger ones in chil -- distributed from all the older groups to the younger ones in chile. only 7 million people have been vaccinated. in other words, wi

we have seen an outlook from the rbnz.us members have said they think the interest rate scenario needs to remain low for some time despite the economic recovery. we also know there has been some supply side constraints with new zealand. we will get a breakdown. 58.4, falling from 63.6 in march. let's get you the first word news. vonnie: the head of the u.s. cdc says fully vaccinated people can stop wearing masks in but -- in most -- in most settings. the cdc cites growing evidence of the efficacy and protection offered by vaccines. it still recommends masks being worn on planes and public transport and by those not fully vaccinated. >> fully vaccinated can participate in indoor and outdoor activities large or small without wearing a mask or physical distancing. if you are fully vaccinated, you can start doing the things you had stopped doing because of the pandemic. we have all long for this moment. when we can get back to some sense of normalcy. vonnie: the philippines is using virus curves in its capitals. an allowable s