ueda: it is doing fairly well. apart from the contribution from some inventory investment the domestic economy is expanding slightly above potential. driven by pent-up demand, relaxed pandemic restrictions, and this is stimulating consumption and investment. there is also green gx, dx related investment taking place. investment is fairly strong at the moment. we think the economy is going to expand slightly above the potential for some time. but there is a lot of uncertainty going forward, including what may happen in europe and the united states. >> i asked if you guys coordinated or talked about monetary policy before. does that happen? should it be more coordinated? you are all doing different things right now. gov. bailey: what we do not do is say, what should we do, what should you do? we are focusing on monetary policy for our area and that is the law. but we do talk. i think is important at all times but particularly important in recent times. we are facing such global shocks. we have all got common shocks.

ueda: no, no. [laughter] it is the jurisdiction of the ministry of finance, decisions on intervention. sara: president lagarde, how much would you like to see inflation moderate from these levels? because we have already seen a nice moderation. for you to feel comfortable taking a pause or potentially go any other way. -- going the other way. pres. lagarde: well, this is not what we are considering at the moment, ok? but, if i look back at what we have covered, inflation was i think the highest reading we had was 10.3%. we are now at 6.1% headline. core has moved a bit down but we are really looking at both headlines, which is the measurement we have agreed to in our strategy and that's visible for people, for the consumers of europe, but we are also looking at underlying inflation, and on that front, you know, we are not seeing enough tangible evidence of the fact that underlying inflation, particularly the domestic prices, are stabilizing and moving down, so we are looking at as many measurements

kathleen: this is governor ueda's second meeting.overnor kuroda held the job for 10 years, some of the most extraordinary stimulus in the world, and now you have a new governor, and people are wondering what he will do. inflation is high and rising. don't even have to acknowledge maybe in a press conference that they see a somewhat different view on inflation? we shall see. first of all, and this team at the boj, many of whom have also been here a long time, and the staff economist who were at the boj for many years, just have to be 100% or 110 percent sure that inflation, even though it is running 3.5% year-over-year right now, is going to not come down too much to percent, maybe get there, but right now, they still see it below. in terms of history, look how long these rates have been at or near zero, the policy rate, that is, so it will be an important shift, and it is one we felt around the world. another thing going on here, of course, is there is no inflation outlook change at this meeting because they only issue the new econom

governor ueda remaining above target. is this about, as he says, remaining confident he will stay in that range? kathleen: he said it so clearly, so succinctly today. inflation has been running about target by just about any key measure for about a year now or more, but yet, not ready to make. let's listen. what's on the line, inflation is still a bit low, around 2%. that's why we are keeping policy unchanged at the moment. >> to a certain extent he seems to be talking about what drives inflation. low wages, that's one of the biggest factors in japan that the boj looks at four if and when they can make a policy shift, presumably starting with some tweaking, which he did not give any indication of doing anything like that today. he does see progress on wages, that they do look stronger. companies are starting to give wage hikes because they know they have to to keep up with other companies that are hiking wages. he thinks inflation expectations are starting to change. he was very witty. i had no idea that ueda was so witty

. >> governor ueda, are you going to get to the 2% by your measure? gov. ueda: so, our projection, inflation projection, has for 2023 fiscal year, 1.8%, 1.8 headline, 2.0% for 2024. now, this makes my job of justifying the underlying inflation rate staying below 2%, harder, but we keep saying we do not have a lot of confidence in this 2024 forecast. this may change, depending on the market. >> do you guys feel -- you have been through a lot of hard moments, covid, the inflationary challenge, and now we are starting to see economies weekend. do you -- economies wekan. do you feel like it is a difficult point in your central-bank journeys? gov. bailey: until we get the question down on target, we have a big job to do, and -- >> is it stressful? gov. bailey: well, i do not know about stressful, but, look, we sign up for this job, and you don't get to determine the conditions you do it in, so we just have to do it. that is our job. >> for you, president lagarde? pres. lagarde: likewise, a man has got to do what a man has got to do at a woman has got to do what

with governor ueda, the currency is an issue. but when he was asked, you are monitoring the yen and intervention, he quickly pointed out that that is for the ministry of finance to deal with and furthermore, he said, what stockmarkets do don't affect boj policy. so i don't think china will get any help from any of these guys anytime soon. haslinda: that said, bod, you see the, sounding hawkish as expected. but if you look at markets, there seems to be an expectation that we are very close to peak rates. kathleen: indeed. it is very possible we are. it just depends what inflation does. jay powell was not super optimistic -- he didn't want the idea that two more rate hikes will be there, but will have to be restrictive which means higher for longer. the fact that they are not worried about recession -- it could happen. he doesn't rule out a deeper recession and said it doesn't necessarily have to happen, but it will happen and it could happen. andrew bailey kind of in the same boat. even the threat of a slowdown in the economy is a

governor ueda is ready to add stimulus if needed. bloomberg understands that micron is nearing a $1 billion investment in india. the u.s. chipmaker has announced expansion in china despite beijing cracking down on its chips. let's take a look at features. we are seeing a bit of gains. we started the day lower certainly in asia. remember there is triple witching, this is when the expiry date of a big pile of options estimated around $4 trillion. the traders will have to decide whether to trace -- chase recent gains. you can see some quirky movements in the markets this morning. the other thing we are trying to figure out is inflation. it feels like every two days the markets worry that how the central banks are doing with inflation. a lot of folks on china. not only are we expecting stimulus when it comes to infrastructure but also concern about the unemployment figure for the youth in china. a lot of these equity indices are just opening. ibex in spain you can see gains of .3%. a bit of data from the eurozone a little bit later on. l

sticks to the loose policy keeping rates in negative territory as inflation ticks higher governor uedaays they need more time to bring inflation down to the target. >>> and elon musk meets giorgia meloni in rome before heading to paris for the tech conference. >>> good morning warm welcome to the special edition of "street signs iemt m -- signs. mandy and i kicking things off joining the rally that we saw on wall street yesterday is the stoxx 600. all three of the majors stateside logged gains s&p 500 with the sixth session winning streak since november of 2021 a really strong session stateside. some of the market sentiment is spilling over into europe as european investors continue to review the central bank decision ecb raising rates by a further 25 an basis p 25 basis points. let's look at the board. ftse 100 up .60% cac 40 is up the same. a lag for the german equity market dax is up .30%. green across the board from the sector perspective, the trade looks defensively. utilities holding up household goods is trading up. healthcare and media is a defensive basket of stocks you see a

. >> governor ueda do you think they are overtightening?> no. >> no, you don't, you approve of the policy you've had a tight labor market for a long time in japan, even before covid. >> yes demographics demographics is working in a way to tighten the labor market. >> it's going to continue this way for a while. >> the economic conversation it gets into an interesting question chair powell where now we're wondering, easier to fight inflation last year when the economy was doing better we're seeing signs of softness and weakness in manufacturing and you mentioned the labor market starting to cool off, about overdoing it and the risk of overdoing it. do you wonder about that or still just focused on inflation? >> let me say the u.s. economy has been resilient the data we're still seeing, including since the last meeting still is consistent with, you know, with an economy that's growing, albeit at a modest pace as i mentioned earlier, yes, there was no question -- the first question was how fast should we go we went pretty fast and we got to a

. >>> -- at the other end of the scale, governor ueda has more about the tightening policy. >> we have forecast projection of inflation path that looks like it will go down for a while toward the end of the year on declines in prices and it moved to there's particular pr -- moved to domestic prices from there, we include the rate of inflation into 2024 we are less confident about the second part. if we become reasonably sure the second part is going to happen, that could be good for policy change. >> rare to hear the governor ueda speak sarah asked the question all of us wanted to put to the governor and that we all have been waiting on our toes to see if they will change their loose monetary policy stance the messaging from the governor is they are not ready yet. he said the inflation forecast for next year and he wants to see underlining inflation move in the right direction heading toward 2% and be convinced now is the time to move away from the ultra loose monetary policy. >> i also thought like what we are hearing from other bankers, wage growth is a determining feature for the ba

ueda's the second judge to describe japan's lack of same-sex marriage recognition as in a state of unconstitutionality while stopping short of deeming it unconstitutional. >>> staying in japan, the government says it wants officials to discuss how to prevent the sexual abuse of children in culture, entertainment, sports, and other fields. the move follows allegations of the sexual abuse of teenagers by the late founder of one of japan's biggest talent agencies. former members of johnny and associates along with others are calling for the country's child abuse prevention law to be revised. they want it to cover abusers with financial or social influence over kids. the children's policy minister has voiced caution about revising the law. he's argued such cases differ from abuse by parents or guardians, which the law currently targets. ogura is set to lead a conference investigating abuse prevention with an inaugural meeting planned as early as next week. participants include cabinet officials, the ministry industry, the cultural affairs agency and others. they're expected to discuss creating a system to

the big one, it is the big panel which will have a jerome powell, andrew bailey, christina lagarde, uedagoing to be massive. later in the evening if you're in the u.k., 9:30 p.m. it will be the fed,'s banking stress test. they will incorporate more into the stress test. there were criticisms last time around that it did not capture higher interest rates and what that meant for banks. finally, the other thing i will be looking out for today post market in the u.s. is micron earnings. i want to bring it back to you on this. we are talking about a further hit to nvidia, amd. micron is already in the crosshairs of u.s.-china politics. rebecca: absolutely. this is on the others of the fence. if nvidia and amd are victims of u.s. policy, micron taking the brunt of chinese retaliation against that. china launched a cybersecurity review in may, announced that micron has failed that. micron saying it expects about a low double-digit impact on revenues as a result of that failure. it is worth pointing out that china has been relatively muted in its response. it has not enforced a lot of this type

you had three of the four to sara's point reiterated that higher for longer is their theme, where uedaas like lower for longer is mine. >> why is that >> it's a good question because he was talking about inflation, core inflation or below headline inflation being below their trend even know that core food and energy is running at 4 i think he's reaching a point where he's going to have to make a move at some point, but as he said during the interview, you know, 25 years of lagging monetary policy, i guess he doesn't feel like yet his hand is forced. >> right. >> but also sara talked about the weakening yen and now they will do that i think you can be sure if the yen breaks 145, 150, there's going to be even more extreme pressure on him to widen yield curve control and maybe get out of negative rates. >> quick last words, i thought he was quite personable and funny. >> i thought he was funny. he got the biggest laughs and applause and even roaring laughter from the crowd which you don't often expect from central bankers. he made a joke about the 25-year policy lag also made a joke about

. >> ueda said the boj will decide on policies by thoroughly considering the effects of its measures.>> and next, nhk world's john ladue is here with biz picks. >> every friday we bring you the latest in business with biz picks. tokyo stocks kicked off the week with a fresh 33-year high following the recent bullish trend. on friday shares had a sluggish start to the day, but they picked up steam after the bank of japan said it will maintain its ultra-loose policy. the nikkei average finished up at 33,706. there are, however, concerns over the negative effects of the long-lasting easing policy. investors are watching closely for signs of when the boj will change course. we spoke with ichikawa masahiro at -- asset management about what to expect. he said one of the boj's key measures called yield curve control might be adjusted at the next meeting in july, but he also says the central bank will be careful not to spook investors and disrupt the current upward trend in the stock market. >> translator: i think the boj will widen the range for long-term rates to 1 percentage point from the

we will bring you the headlines from governor ueda's press conference in one hour. raises interest rates to the highest level since 2001. christine lagarde says the fight against inflation is not over. >> it is very likely the case we will continue to increase rates in july, which probably does not come as a big surprise to you. but that is what i'm telling you. this is so because we are determined to reach our target in a timely manner. dani: plus, former u.s. secretary of state henry kissinger says he believes the u.s. and china will go to war over taiwan. happy friday, you have made it to the end of the week. we were talking to christian kopf about the wall the maturity that will face issues if we do not get any cuts, and have higher for longer. it is bananas to see what stocks are doing what they are doing. the s&p and nasdaq rallied more than 1% yesterday. if you look at today, we have given back some of that but we are pretty much flat and hanging onto these gains. we are above 44,000 right now, microsoft and tech have been leading us. microsoft at a new all-t

because later today sara eisen will be moderating a panel with jerome powell, christine lagarde, kazuo ueda and andrew bailey so much to unpack. there cease so much data to watch out for, the fed's preferred inflation gauge is coming up friday we have eurozone inflation numbers coming up toward the end of the week as well. it's not just about the commentarybut the data that's coming with it at the end of the week. >> hugely important since all the banks are so data-dependent. i am so very much looking forward to the panel this afternoon and i know you are too. >> that's it for "street signs." i'm joumanna bercetche. >> i'm julianna tatelbaum. thanks for watching "street signs. "worldwide exchange" is up next. >>> it is 5:00 a.m. at cnbc global headquarters and here is your top "five@5." stocks snapping their losing streak with tech leading the charge and the nasdaq poised to knock its -- get this -- best first half of the year in four years. futures searching for direction this morning shares of chipmakers very much taking a hit at opening bell on new reports the biden administration is tak

nikkei soaring up .70% this as the bank of japan governor ueda says more time is needed to meet the 2% inflation target after the ultra easing monetary policy. traders expected the move despite stronger inflation the bank retained the base rate at 0.1%. what a picture in central banks. it stuck to the policy of allowing the 10-year bond yields on the other side of the target which brought on yield curve control. no change to the bank of japan policy as for european trade this morning, i mentioned we are seeing green across the board. you have it with every region in europe trading higher following the positive moves on wall street yesterday worth noting, europe under performed wall street. a bit of a catch up trade here investors reviewing the central bank decision yesterday with the further 25 basis point rate hike signaling more hikes to come the euro against the dollar. that is a move high ner in the euro it is a positive start to trade this friday morning. frank. >> julianna tatelbaum live in our london newsroom. thank you. >>> time for the check on the corporate stories with silva

kazuo ueda, jerome powell, christine lagarde, andrew bailey it doesn't get much better than that good luck this afternoon sara will have much more, moderating that panel. as i just mentioned, jerome powell, christine lagarde as well as the heads of the bank of england and bank of japan all starting at 9:30 eastern time. >>> joumanna bercetche is standing by in london with your global briefing. hi, yjoumanna. >> hi, dom in an exclusive conversation with cnbc, google's leader said they want to build a path safely and responsibly. they're working on technologies to make it easier to distinguish between hue panhandle an ahuman and ai-generated and as part of the deal, volvo will add the north american charging standard port to all new cars starting in 2025. >> joumanna bercetche with the headlines. thank you very much. >>> back here, the supreme court is taking on the constitutionality of wealth taxes and whether congress can have any say on that whatsoever. the court's justices could put a stop to the major democratic policy before it's even enacted. robert frank is here with more at wha

for central bank leaders for tuesday christine lagarde and jay powell and andrew bailey and governor ueda on wednesday, the stress test results ahead of the u.s. gdp numbers on thursday and a flurry of data to finish the week with flash eurozone and pci index from the u.s that is containing the fed preferred gauge of inflation we will be live on tuesday sitting down with the chairman of the board of the bank of lithuania and the latvian governor. >> big week coming up. >> we say that all the time. >> central bank dream this week. >>> friday, for me, was such a pivotal day. it is when we got the flash pmi numbers. i was teasing on the break because you were looking at fixed income and i said i won you over to the dark side with the equity background you have here that was significant we are really now getting to the point where i think investors are understanding that in order for central banks to be successful at beating inflation, they have to keep rates higher for longer or possibly keep hiking in the face of the inflation pressure which is what we got from the bank of england. the fed

. >> everyone except ueda. he continued to coo we would say. a power check with tesla one of the best performing stocks in the s&p up 2.5% as they're expected to hit record sales in china, even though some analysts rry out the u.s. growth in the short term we'll have more next ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. >>> welcome back to "power lunch. a slew of ev manufacturers announcing a move to the north american charging standard over the coming years, giving ev users access to tesla's charging stations, but how much value could it drive for tesla our next guest says not so much. maintaining an under perform rating on the ev giant joining me now tony sacconaghi, bernstein senior research anal

for ueda, he would be interested in not encouraging that move and seeing if the others can actually given that they are almost done, which is what the other three don't want to do. they want the markets to worry that they have more to come, because they don't want the markets to start pricing in rate cuts. you and i were talking offline about the function on bloomberg that shows you futures trading. we have added out another year, so you get a long look at what is in the markets, and while it is certainly not trustworthy, because markets change their minds all the time, it shows big rate cuts in the u.s. in 2024, still not in 2023, which is what jay powell wanted. tom: nailed it this morning by harkening back to 2004. jonathan ferro has been really good about this, talking about not so much how trichet got a wrong, but the ecb took a turn precrisis by staying tight. all of these people have been advised by their phds let's remember the mistakes that were made. what is the mistake that haunts these makers? michael: it is about the same time period in the u.s. and the u.k. for slightly dif

we have powell, bailey, lagarde and ueda and you take a look at the fx and you see it.o is advancing. we see the bullish across g10 except for the japanese currency, which briefly hit 144 which is a divergence. david: stay tuned for the debates. we will look at the aussie dollar, the big market story today with the soft inflation print that we will talk about in just a moment but very soft pollution. markets briefly priced out the rate hike next week and it has come back a little bit. stay with us. this is bloomberg. ♪ and this is ready to go online. any questions? -yeah, i got one. how about the best network imaginable? let's invent that. that's what we do here. quick survey. who wants the internet to work, pretty much everywhere. and it needs to smooth, like super, super, super, super smooth. hey, should you be drinking that? -it's decaf. because we're busy women. we don't have time for lag or buffering. who doesn't want internet that helps a.i. do your homework even faster. come again. -sorry, what was that? introducing the next generation 10g network only from xfini

ueda for a long time. he is my friend.y -- but i cannot read his mind, unfortunately. he is very serological -- theological person for data. data is important. and how he thinks weighing the risk on the upside and downside. i think he is telling what he is thinking, which is that the risk of premature tightening is greater than the risk of over sharing. shery: takatoshi ito of columbia university, always great to see you. and also our kathleen hays. still to come, ubs's semiconductor analyst joins us before their inaugural future now conference in hong kong. an update on china's chip efforts coming up next. this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management. shery: take a look at how softbank is trading at the moment, gaining almost 7% in tokyo trading. this as we hear that intel could be discussing being an

that was a joy to hear governor yi ueda speaking.cult because the english was really not there at four is. katie greifeld is in. katie, it was a real joy to have that first listen to the newly minted governor of the bank of japan. >> a hint of hawkishness. i mean, maybe he is the person who is finally going to lead japan out of those extraordinary policies. tom: it would be a generational change. i will not spend a lot of time on this, but the basic idea is, it is a tough sell to say that japan matters. it is unoriginal experiment right now. katie: oil is not doing much. we had been following the situation in russia. we do not know how the drama will play out in the coming days, weeks and months. but the russian leader made opec stronger than ever. remove him and the rest of the cartel would have a problem. tom: his acclaimed book was out a few years ago. so much of the geopolitics is wrapped around whether commodities as a whole, even gold. the head of the research has been wonderful about the eclectic nature of commodities. i have