rbnz. hawkish move. aggressive move. one of the first among the central banks with a 50 basis point hike. how much more can they go? >> yeah, well, my colleagues will be delighted. they have been calling for this hike by the rbnz. how far? 2.25% by the beginning of next year. but see how the quarterly inflation numbers come out next week. that may give us more guidance in terms of justification, but we think we are on track. >> while. -- wow. do you think that in terms of the kiwi, the moves, are the rate differentials the biggest thing? is the dollar still going to be the most dominant in terms of market thinking now in the strengthen the greenback? >> yeah. it is tricky. it's like a photo finish. who is hiking 50? bank of canada potentially tonight as well doing another 50. it is a combination of commodities and informatics -- interest rate differentials. we have had basically the kiwi, the aussie, the canadian dollar outperform the u.s. dollar as a function of the commodity prices. i will be watching the aussie-kiwi c

juliette saly on the rbnz rate and the language used. enda curran to talk us through the whole inflation. we have marked champion with the latest on the war in ukraine. dani: let's start with new zealand whose central bank has raised interest rates by half a percentage point. let's get more with bloomberg's juliette saly in singapore. break down the decision for us and the market reaction. juliette: catching about 15 of the 20 economists off guard, they are expecting a quarter-point hike. they are saying the path of least regret is to move more aggressively now rather than to have to play catch-up down the track as they grapple with inflation. the rbnz likes the inflation but -- to be between 1% to 3%. they've increased rates by 125 basis points since october force -- october 4. you could see another 50 basis point hike, 50% chance of that coming through in the may meeting. asb and kiwi bank calling for that. let's have a look at what it did to market reaction. we are seeing yields yet -- drop. we saw quite a big move. let's have a look

new zealand bond yields rising as well ahead of a cash rate decision from the rbnz.ek, we are expecting to see the rate raise to 1.2 5% from 1%. we have plenty more to come on daybreak. stay with us. this is bloomberg. ♪ shery: here is a quick check of the latest business flash headlines. india's company has received environmental clearance for an $8.6 billion plan -- facing protests. activists are citing concerns over pollution and the diversion of land away from agriculture. gsw -- jsw says it set aside funds for environmental protection. a coffee company completed the restructuring of its financial debt, emerging from chapter 15 bankruptcy proceedings. that means it is no longer subject to insolvency proceedings in any jurisdiction. the ceo says he is confident the luckin coffee will have growth. rising labor costs weighed on profits in the fourth quarter. net income rose 7.4% to 1.2 billion dollars, missing average analyst estimates. a talent crunch is making it harder for i.t. companies like tcs to attract workers, increasing costs and weighing on margins. paul:

how much is this when it comes to domestic inflation pressures really weighing on the rbnz. what the government does fiscally. sharon: there is consumer price inflation every year -- everywhere, but new zealand is a big food exporter. we love it when our terms of trade go up above but it does all add to the inflationary picture. the inflation is all important. the tight labor market for example, like many places, they have expectations rising sharply. it is pretty clear this is not the sort of inflation that is going to go away. shery: explain the rationale here when he is trying to get to the path of least regrets that they talked about in february. sharon: up until very recently, the biggest regret was seen as causing a rise in unemployment in the very near term. but now with inflation where it is and expectations so much higher, pricing going up, the biggest regret would be losing inflation targeting credibility. it is a bit of a 180. it is not that simple. normally we turned down growth risks and consumer confidence is on the floor, for example. they would normally argue

the rbnz delivering its biggest interest rate increase in 22 years with that massive move to 1.5%.ve seen the kiwi dollar pairing those gains that we saw her earlier. the aussie trading the highest since 2020 against the kiwi. that's been driven by expectations that are being reined in and the market as to how much further and quicker's rbnz can move from here. shery: we will be watching those moves. let's turn to the geopolitical tensions still ongoing. the u.s. set to expand the size and scope of weapons it's providing to ukraine in a new $800 million package of military assistance. let's get the details from jodi schneider. what is the significance of this renewed aid? jody: it's a big package. new firepower for ukraine from the u.s.. president biden announced it today after talking to the ukrainian president on an hour long phone call. he basically outlined it. it includes new helicopters, ammunition, artillery, and other military hardware. it's a more intense military package than the mostly defensive kinds of weaponry that the u.s. had set ukraine before. it pushes the limits

the rbnz at decision is later this week.ed to raise rates by 25 basis points, as commodity prices rise, adding further to inflationary risks as well as elevated energy prices. just really expected to cement the rbnz's conviction that further tightening is needed to prevent market pressure from morphing into a wage price spiral. also likely to see signaling of more rapid tightening. this is what we are seeing what it comes to the australian three and 10 year. the aussie dollar opening .2% softer after the may 21 election was called. shery: the 10 year yield in australian topping 3% for the first time since july, 2015. quite something when it comes to that jill -- that global bond rout. china defending its covid zero strategy as america asks americans to avoid traveling to china after what washington because the arbitrary enforcement of rules. let's bring in stephen engle. what is the latest on the shanghai lockdown? stephen: despite the fact that of course they have been in lockdown now since march 28, we're seeing a record n

we saw the biggest rate hike in about 22 years from the rbnz.we have had more hawkish and aggressive language from governor adrian or about the pace of monetary tightening, and they expect to keep raising rates in the coming quarters to contain inflation expectations. 1.8% quarter on quarter, slightly lower than expectations of 2% but faster than the 1.4% that was the previous quarter. the year-on-year number, 6.5% is the inflation rating for cpi. missing expectations a little. we were looking at expectations of 7.1%, but picking up the pace from the 5.9%. as such, inflation rate at 6.9%, the fastest in 32 years for new zealand. shery: a little more on the fallout from bill akron's call on netflix. they have lost more than $343 million under three-month bet. we have learned pershing square holdings sold their netflix investment today. they purchased more than 3 million shares just in january, but we are now learning to have lost more than $430 million on that three-month netflix bet. their loss on investment cut was year-to-date returns by four

haidi: take a look at how we are seeing the rbnz decision reverberate across these other assets as well. other central banks being put on notice as to the aggressiveness that they might need to move to get the front foot on global inflation. we saw that massive 50 basis point hike to 1.5%, the biggest rate rise in 22 years. he talked about the bank of canada earlier as well. a lot of these commodities -- benefits and inflationary impact being felt as well. we are seeing a little bit of upside. a muted start. a quarter of 1%. the 10 year yield holding pretty steady. kiwi stocks up by 2/10 of 1%. we are watching the pricing dynamic when it comes to the aussie and kiwi. the aussie dollar trading at the highest since 2020. with that big 50 basis point move, traders are winding back their future expectations of what more and how fast the rbnz will move from here. dollar-yen creeping up there. 125. still not over 20 -- 126 that we've been seeing more movement in that pair then we have since the intervention from the finance ministry. investors bracing for a busy day ahead for asian central ba

be the longest losing streak since january and of course, this comes as we are headed towards the rbnze decision. they are expected to raise rates by 25 basis points. they have already raised by more than 75 basis points in october 2021. we might see more tightening to come. australian futures pointing to the downside. .3%. but this of course after two sessions of gains and as we continue to see that 10 year yield continuing to rally to the highest level since 2015. we are also watching japanese stocks which are pointing lower at the moment. this after losing ground in the previous session. we have had significant weakness on the japanese yen but of course we will be watching that 10 year yield as well because it rose to the highest point -- .24%, close to the upper limit for the boj so if we get past that 25 basis points, we could see some more boj operations. we are expecting ppi numbers out of japan so take a look at that. and this as the japanese yen flipped the board. you can see the currency space is now at the 125 level. very close to the weakest levels in 2015 against the u.s.

what does this mean for the rbnz going forward? you would not think he has been more hawkish than the past three weeks after that biggest rate hike in 22 years, but there we have it. we have inflation numbers coming through. 6.9% was the fastest and 32 years. take a look at the trading when it comes to the kiwi dollar as well as the trading pay out when it comes to aussie kiwi. the mist when it comes to first quarter cpi. markets were expecting and even faster rate of inflation than what we got of almost 7%. that will give the aussie dollar a little more of a shove in the direction of a dollar 10 and potentially higher after the cpi mess. the rbnz is likely to raise rates again but that could also mean the terminal rate is tweaked lower should we see this sense that the inflation trend could be peaking. the kiwi rates are slightly lower after that data. look at this set up when it comes to the equity session. we are seeing another day of pretty good gains in-store when it comes to australia. we have that market trading at the highe

the rbnz dropping its language around patients and you have fx traders really boosting bets on high interest rates from the -- jumping the most in on most three weeks. still holding onto most of its gains. you take a look at the 10 year yield and the three year yield, and a big move up and it comes to yields, mostly being held on the shorthand and the longer end. when it comes to the equity session, sydney futures looking down about .7% on the back of the fall we saw on wall street. some concerns over central-bank hawkishness as well as continue geopolitical implications related to inflation as well. dollar yen holding pretty steady at 123. it has been so range bound over the past few sessions. shery: definitely between that 122 and 125 level. let's talk about the hawkishness you mentioned when it comes to the federal reserve. whether it was brainerd's comments about shrinking the $9 trillion balance sheet as soon as next month, or those comments really echoed later in the session by the san francisco fed president, or even georgia signaled we could potentially see the 50 basis point hike. w

we have an rbnz decision wednesday. commodities, 2% or more losses on brent crude. 95 for wti.in singapore down more than 2.5%. the lockdown story seems to be changing the mind of investors now. haslinda: it is also about waiting for the pboc and chinese government to deliver on promises to lift sentiment. in the broader market it is about the bond market. u.s. 10 year yields getting to .75%. the highest level since 2019. you're raising the premium. inflation the huge concerns. a question whether the fed will move in a more aggressive manner and that is suddenly weighing on sentiment to take a look at where the csx hundred is down 2.6%. hs tech under a lot of pressure. the chinese government says it will remain on the lookout for regulatory concerns. that is suddenly weighing on sentiment. plenty more in the next hour of bloomberg markets asia. stay with us. this is bloomberg. ♪ haslinda: it is almost 11:00 a.m. in singapore and shanghai. welcome to bloomberg markets: asia. yvonne: here are the top stories. we continue to watch as bonds selloff. china defends its covid zero pol