ueda might just be keeping it dry.uld it take for him to move -- rishaad: what would it take for him to move? the increase in wages as part of the leg missing in terms of what he wants to see, but could there be something else that could move the policy? is it the right policy for the way japan is at the moment? martin: waiting for the wages does not work because people see their wages every month and they are looking at the real wages, and they are going down because of inflation. it is the important times where the government keeps icap on it, where energy subsidies, this is why inflation remains relatively low because the government is doing its job, and this is why the pressure on the bank of japan and the governor are so high. people are unhappy with the current situation. rishaad: give me a sense of how japan has changed given the euphoria surrounding the equity market, a lot of optimism concerning the economy, considering that the spirits are up turning and we have more emphasis on companies looking at their cor

kriti: i love that you talk about that because you eta -- ueda saying all options on the table. in terms of him as a figure that the world is watching, what is at stake? avril: plenty is at stake. we always talk about how the central bankers are caught between a rock and hard place but for him, especially so because if you look at how the pressures is on to keeps to mess up for ueda based on the street ueda numbers coming out of japan, this morning as well it shows us how global demand is really beginning. there is expectation that he will have to keep things on the stimulus pedal but the yen depreciating is comforting that picture. so, we get the sense that the focus will not be so much on what he says or that decision but what he says after, during the press conference whether we will get more intervention or hawkish comments in defense in a way of the depreciating japanese currency. the good news in a way is that we get the sense that is a lot more -- ueda is a lot more stable and away when he committed gets to the market versus a shock and all we got from his predecessor in

we will bring the headlines from governor ueda is a news conference. the bank of england takes a run of 14 straight hikes to keep rates on hold. the bank focuses on recession risks had a pmi data today. plus, energy back in focus. the strike actionipts in austria and russia bans exports of diesel and gasoline risking disruption to fuel supplies out of the winter. a lot going on in the geopolitical space. monetary policy driving the markets. the fed hangover continues. you are seeing that in futures. we are seeing that a both sides of the atlantic. euro stoxx futures will be a little bit this morning but not as much as they were the last couple of days. they're down 0.2%. the outperformer is actually u.s. futures which screams the fact that the idea that the fed hangover very much having a technical retracement effects. we had a lot of pain in the u.s. equity index and this is only natural that we see a pullback on what the action was. 4.379 in those contracts. the bond market is crucial take a look at the yield curve which has narrowed. still negative

the highest level since 2014, central-bank speculation, ueda starting a negative rate policy. there you have it. the yen just now at the moment seeing and advancement again. critically lower levels and intervention territory. yvonne: you've seen the strength. it's the tweaking of the messaging that is waking up the market, talking about by years end, 2024, they will get enough clarity on wages whether inflation can sustain itself. negative rates could be the option of exiting that if they can continue the trend that is what is marking the surprise to the upside. rishaad: yeah. just looking at jgbs, bigger gains on the yield as you were mentioning. we got the topics bank index up even though we have the nikkei which is down a fraction. then there is the expectation that something's going to happen. they're going to love if they can make more money, that is what it is. yvonne: how is this going to work in terms of order? lifting out of negative rates, that is something we need to deal with and we haven't in a long time. positive news flow it comes to china, inflation activity da

what kind of messaging do we expect to see from ueda given the outsized market reaction?earing from ¡se fue la luz! pero todavía tenemos wifi para hacer las tareas. ¿y eso es algo bueno? wifi y estudiar. buenísimo. wifi y pedir una pizza online sería buenísimo. presentamos storm ready wifi. solo de xfinity. ahora puedes mantener una conexión confiable durante apagones, con datos celulares ilimitados y batería de respaldo de hasta 4 horas para mantenerte conectado. obténlo solo con xfinity. el hogar del 10g network. entérate más hoy. every business that's why comcast business de is launching theal. mobile made free event. with our business internet, new and existing customers can get one year of unlimited mobile for free. it's our best internet. powered by the next generation 10g network and with 99.9% reliability. plus one line of free mobile for an entire year. it's the mobile made free event-happening now. get started for just $39 a month. plus, ask how to get one free line of unlimited mobile. comcast business, powering possibilities. >> we are getting consumer price i

talk to us about the effectiveness of those comments from ueda over at the boj.s this something that dollar bulls need to worry about? >> absolutely. the bank of japan is the outlier. they are the only major central bank that had not done anything with official -- official interest rate policy. everybody else has been tightening for more than a year and most of them are coming toward the end of that cycle. the bank of japan has not even started on their cycle. everyone knows they been on inflation for a couple of decades but finally there are clear signs that core inflation in japan has reached a level where they can actually consider doing something. he has opened a cam of words -- worms on the negative rate. the idea that they could move away from negative rate policy. that was something that was on was impossible to discuss and japan. they finally opened the conversation on that. the markets are really beginning to factor in. there is a lot more to be done. people already thought there was a chance there could be some strong language for that meeting. they wil

after friday's meeting ueda was asked when the boj might consider a broader revision to its policy. >translator: at present it is not yet possible to perceive a sustainable achievement of the price stability target. therefore, it is necessary to continue monetary easing. if we can get to the point when we can achieve the target, it is natural to consider revising the policy, but at this point uncertainty over economic activity and prices is extremely high. it is impossible to decide when to revise the policy and what specific measures to take. >>> okay, next nhk world's john ladue joins us with biz picks. >> the bank of japan has decided to maintain its current monetary policy framework. in its previous meeting in july, it finally loosened its grip on long-term interest rates. we spoke to a former executive director at the boj for his take on the decision to maintain the status quo. >> basically boj keeps its view about the economic crisis. and the economy is recovering, and prices towards 2% inflation target on the boj, but still there's a lot of uncertainty. so boj will have to keep

shery: especially after comments earlier in the week by governor a way to -- ueda.ftbank as arm priced its ipo at the top end of its range raising $4.9 billion in its larger assisting of the year. keep an eye on asian airlines stocks after several carriers flagged a disappointing outlook for the third quarter as we got higher fuel costs and winning domestic travel demand -- waning domestic travel demand. haidi: sec capital shares there strategy. we are live at a summit speaking to the asian infrastructure investment bank. ♪ i'd like to thank stitch fix.. ...for taking care of the shopping. for getting my fit just right. for finding me looks that work for me and my budget. now getting dressed is so easy. -you just get me. -they get me. -you just get me. -and they'll get you, too. take your style quiz today. shery: this is "bloomberg daybreak: asia." we are counting down to asian major market opens as investors digested disappointing see prior numbers both core and headline inflation accelerating. oil at this year's highs. haidi: really deciphering the implications of

ueda has been tacking back and forth. he wants to be gradual.learly does want to get away from the corona era in less easing. this will put a bit of extra pressure that will make that harder. for the bank of entity to they are at a somewhat easier space. they have been resting on their laurels for quite some time. that is likely to continue. but, they will face, as everyone in asia well, the continued dollar strength that makes things a bit more complicated than it otherwise might be. scarlet: bloomberg contributor garfield reynolds. now to the latest on the u.s. auto workers strike. stellantis made a new contract offer but general motors insists the uaw demand remain too high. bloomberg's su keenan joints me with the latest. the union has been pushing for a wage increase of 36%. su: yes. it might seem like a lot but the union believes that is what their people to serves. gm is not really going that far. we will get more on that in a minute. because stellantis has made a new contract offer. they make jeeps and the chrysler model. the uaw is not

ueda's comments helped the yen. because of the u.s. yield yesterday. i think in the near term, u.s.ch -- push much higher. the tenure is struggling to get about 436. unless i can break through those ranges, the markets really need to dial back on the fed expectations for rate cuts. unless the fed spurs that or you have university of michigan data, inflation petitions rise indicates inflation is getting sticky, that will worry the fed. unless you have these cuts, it will push much higher. without them pushing higher, the upside in dollar yen seems limited. i don't think it will begin much, but 145-150 range. you can trade around that quite happily in the coming weeks. rishaad: thank you very much, david finnerty there. looking at what has been going on with the dollar, the euro and the yuan in light of the data. we will be looking at something the fed does not want to see, elevated oil prices. some investors are loving it. this is bloomberg. ♪ i was told my small business wouldn't qualify for an erc tax refund. you should get a second opinion from innovation refunds at no upfront cos

we heard from ueda and his deputy, setting the path for stimulus measures, saying why they are necessaryo promote growth. nothing really to stop the yen weakness in its tracks for now. haidi: we got to talk about chinese property woes. evergrande is facing a more complex path to restructuring. one unit failed to repay a bond. executives are in detention. trying to keep up with the latest developments, things just seem to get worse for evergrande. >> the bad news never seems to end. last week there was detention in evergrande. the company cited reasons such as things not progressing as well as expected. the news triggered a plunge in shares and securities of other chinese developers. and adding a twist and turn, the company is one of the largest offshore units. at the same time, tai shing reported x executives including the former cfo and ceo have been detained by police. no reasons were given, but it just seems that all of these -- as to the uncertainty of the future of the company, the company is sitting on a debt of a trillion yuan and it is proposing to restructure based on the propos

we had heard from governor ueda hinting at the possibility of ending the last key negative interest ratesworld, telling local newspaper that it is possible the boj will have enough information by year end to judge if wages will continue to rise. we will continue to track yields, as they have surged on those comments. we are watching the aussie dollar and the kiwi dollar holding steady. we saw them jump the last few sessions against the u.s. dollar we have seen positive comments from secretary yellen about the u.s. sticking a soft landing but at the same time given the strength of the chinese yuan, that also sent currencies across australia and new zealand higher. you can take a look at the offshore yuan at the 730 level, rallying the most since march after the pboc gave a strong verbal warning in its defense. >> we saw strength when it comes to the check rally overnight -- tech rally overnight, that is determined by where the fed goes from here, the communication goes from here. s&p futures, the nasdaq, all modestly lower. flat trading when it comes to the dow. we saw u.s. stocks gaining

this comes at a time when yes, the governor of boj ueda talked about the possibility that yield curvetrol may not be the way to go. but you need to pay attention to how much pressure the boj is facing from markets. this is at the core of the trade last year where a lot of hedge fund investors with money to spare shorted the gdb market. now that trade is coming back into play as you see yen swaps start toprep for that kind of move. may show you why this pressure is crucial. the pressure is only building. it is showing you just how crucial and dire the situation is. yes, japan would welcome the inflationary story. but they need to really keep an eye on import prices. jgb's and 10-year yields are testing the bank of japan when it comes to yield curve control. it shows you the band and how much wider they are going to get. the first three iterations of the yield curve control since 2017 are smaller margin of increases. from 2022 to 2023, the bands get even wider. how much wider is the major question as we watch that 155 level from mr. yen, but 1:54 nervousness around the markets. we look

>> to set the scene, we have the comments from governor ueda that sparked speculation we could see aof japan that is taking steps towards normalizing monetary policy. that sent jitters through the bond markets. we had concerns we would see weak demand for the auction of the 20 year japan bonds. but that is not the case. we saw stronger demand so that is being reflected in the u.s. jgb futures. there appears to be soothing of those concerns in the bond market. kriti: certainly something we are watching closely. avril hong, we thank you for joining us. we go from singapore to frankfurt. it is a knife edge decision day from the ecb. economists split on whether they will raise interest rates for a 10th time or pause. . maria tadeo at the scene at the central bank headquarters in frankfurt. is that a hike or a hold? are we leaning one way or the other? maria: the suspense at this point just hours from this decision today from the european central bank. we have spotted christine lagarde on her way in. i believe that 7:15. she's already hard at work. this is a two day deliberation. when it

bank of japan officials seeing that discrepancy between what governor ueda said which really moved marketsand how traders have interpreted those remarks. officials say they did not signal policy change. the other big story we are watching is the woes in china's property market and the broader economic slowdown and equity of chinese stocks. starting the week with losses. we did come off session lows at one point on the mainland the csi 300 hitting the lowest 2023 intraday level. that gauge sliding more than 2% in the monday session. we continue to watch for development when it comes to country garden and weatherby will see any rebound today. that equity route is really one of the bigger stories we are watching here in asia. our next guest is still positive on market in the near term and says the third quarter is likely to bring an end to the earnings recession in the u.s. joining us is laila pence, president at pence wealth management. you sound pretty sanguine when it comes to fed expectations, whether any kind of inflation is coming from energy prices could mean we see higher rates for lo

the fact that ueda did not do anything and downplayed the need to lift rates during his press conferences there now more room or that window is open for more intervention to the yen? they are saying it might be more likely post boj now. david: absolutely. that 148 is essentially still at the exchange rate lows. the real effect of exchange rhythms have added to the lowest in 60 years or something like that. the broader picture across equities, if you strip japan out of the region, most of the benchmark is down. most sectors are down, though you can see there are more than a few bright spots with i.t., consumer staples, property which is less representative of china, health care up about 1%. s&p futures are up but the pain continues to be the resurgence in the bloomberg dollar index yields. rishaad: quite something, looking at the pound taking a mauling as well. let's look at china for travel. the indices are getting a boost from the upcoming golden week holiday. 121 million people are expected to take flights across the eight days during the holidays that come between the mid autumn festi

. >> we have seen how assets continue to react, given those comments from governor ueda about the bojnce to start looking at tweaking their monetary policy stats by the end of the year. in corporate news, we are watching qantas again today, the high court said to rule on the legality of the flag carrier outsourcing over 1500 workers during the covid pandemic. let's get to caringly. what are we expecting and the significance of this decision that qantas has had a difficult run lady -- lately? >> this is just the latest woes of qantas that we have talked about recently. it's been a hard year for them. for qantas, they had 1700 ground workers sacked during covid, and the high court is expected to hand that verdict down any minute, and qantas want to see if it wins or loses, one of the things that we will see if it loses is if and what qantas will have to do, will units be pushing for fair rights for workers, will they hire them back, we have to see what this -- happens for the airline and the new ceo who is taking over at a time when its reputation has suffered and there is a lot of diss

addition to the fed we are also looking ahead to the bank of japan, where we are expecting governor ueda to sound hawkish to rein in the moves we have seen in the end. we are hearing from japan's currency chief speaking about the prospect of intervention, saying that the excessive yen moves are not desirable, that they are keeping in contact with overseas authorities, especially when it comes to u.s. treasury. these comments coming as janet yellen said any intervention by japan to prop up the currency would be understandable if it was aimed at smoothing out volatility and not affecting the level of the exchange rate. we're hearing from japan that they are not ruling out any options and will take appropriate steps on fx. and they are watching the situation with a high level of urgency. say they are communicating with their u.s. counterparts every day and the two countries share views. so that statement from janet yellen, according to our colleagues, imply the secretary will not stand in the way of any kind of japanese intervention in the yen. so we are on alert. but heading into that boj

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