governor ueda says the accommodative stanl

whether it is the nikkei or kyoto news all essentially reporting it as fact that tomorrow governor ueda will decide to end negative rates. annabelle: just talk us through -- give us a sense really of the candidate saying we need more time. how big is that and how prominent have those voices been? sure more context on that. >> yeah, again some economists including berber intelligence -- bloomberg intelligence indicating that was not not the time. we will have a guest coming on who says now is not necessarily the time, and we have to see what else comes with it, with the scrapping of the yield curve control completely, whether there will be scrapping of the policy of buying etf's that was a backstop to the equity market, but the equity market at 30,000 plus as recently as march 7, over 40,000. do they need to be continuing to purchase exchange traded funds and also jgb's, another indication of whether ueda wants to send a signal to the market that they are going to continue an accommodative policy despite exiting negative rates. one way to do that would be to continue with the jgb purchas

governor ueda said wage growth is what they are scrutinizing.been mixed signals from boj policy makers about when they might pull the trigger on policy normalization. governor ueda says the price target is not insight. -- is not in sight. let's get more from our senior editor, on the balance of things in terms of the data, because we know central banks want to get back to looking at the data, what are the scenarios that could play out in the likelihood we are looking at? >> we had seen some conflicting signals from people over the last couple days, and to go back, the most clear signal was sent yet to end the negative interest rate. the boj price target has come into view. he said it would make sense now to downshift monetary policy gears. that is definitely a go signal. ueda came in a couple hours ago, he is in sao paulo at the g20 meeting, and he said mixed things. on one hand the weight situation is looking good, companies are coming through with fairly robust wage hikes, and in contrast he said the price view is not yet in sight. on that poi

ueda sees a japanese economy recovering slowly. a majority of boj watchers expect a hike to come in april. we look ahead to india's latest inflation print to later today. we will hear from the bank of india shortly. investors saying -- staying on the sidelines waiting for that crucial cpi print. powell said he just needs a little more convincing that cpi inflation is heading towards to percent. investors looking for more clues if the uptick was a blip. in terms of the nikkei 225, a stronger again so it is extending a slump. the boj may exit negative rates perhaps in march especially on the back of what it did not do yesterday. it did not intervene when the topix slumped to percent. typically it has jumped in prop up the market at 2%. it is about china and the lackluster performance of vanke causing a lot of trepidation as well as concerns in the property market yet again. moody's downgrading it to junk. the yen is the one we are tracking at this point as it continues to rally. it has outdone every g10 currency this month and some s

ueda will be asked about that this afternoon.ll probably retain ambiguity about what they are going to do. i think the boj will address the situation by saying they are keeping accommodative monetary policy conditions, but he does not say when or what. stephen: is ambiguity what we need right now, or do we want clarity, that we are in an interest rate hiking cycle? >> given the situation of the level of the raised pressure on how it is going to transfer -- i think still ambiguity is something that has to hold. stephen: and inflation, they feel pretty confident it is going to stay above the 2% target. the statement says the cpi increase likely to be above 2% through fiscal year 2024. we don't have any more clarity beyond that. the wage increases were a good step forward, but again, the underlying weaknesses in the economy, is there not? a lot of that inflation was as well from the weak yen. a lot of retailers have pricing power in areas where there are a lot of tourists. is as sustainable? >> tourist account for only 1% of the who

haidi: ueda has proven himself to be nimble but as a refrain from clear messaging, so could we get more accommodative communications along with tightening? >> i think absolutely he will be fairly dovish, ending is not going to essentially telegraph any future heights as well. he does not want to go against what he has always been saying, which is we will remain fairly accommodative. we are likely a most economists expect to go along with this interest rate hike to exit negative rates there will also be a commitment to basically be constant with this jgb bond purchases essentially to show that despite the fact that we are exiting for the first time in 17 years the negative interest rate policy, we will remain a fairly accommodative policy with the bond purchases. one thing a lot of economy saying they will back off on etf's. at the stock market does not necessarily need the backstopping anymore. the etf purchase program is been a since 2010, so that could go away as well as negative interest rate policy, but bond purchases can keep going. is this the foregone conclusion? most likely, yes

ueda is giving a self optionality, but you were getting weakness in the japanese yen today. gold remains above $2000 per ounce and bitcoin still above 61,000 just down .3 of 1%. let's cross arbiter asia with avril hong standing by in singapore. what is sending up to you? avril: china, japan, but also the u.s., at the inflation print seems to be clearing key uncertainties for investors, and they are risk on today. asia stocks writing, decay -- nikkei leading the charge because almost 2% higher, interesting depended on the jobless rate, that slid, so this represents a tight labor market and could put further upward pressure on wages. as you mentioned earlier, we are seeing doj governor tempering expectations, and that is why you receiving the yen erasing gains from yesterday. it board, china data focus as well, factory activity showing a fifth straight month of contraction, but then at half 12 months were spent to contraction, really flashing concerns about slowing demand. let's flip the board because that seems to be shrugged up by the markets and the focus seems to be shifti

there's been a hypothesis or theory that it could be to undermine ueda, or is it too much turbulencend markets? why do we see these loose lips? >> if the government were opposed to the boj's policy direction, than the government would be a big culprit. in 2000 when the decision to raise interest rates was made, the government opposed that movement. it was clear the leaks had government fingerprints all over them. and i'm not talking about a telegraphing of general inclinations, which is widespread in the world of central banking. i'm talking about very very high degrees of specificity. i've been talking a lot in the past week about how markets did not react at all to the historic boj shift. why would you react when it is already known? annabelle: that was our bloomberg opinion columnist dan moss. you can get a roundup of the story you need to know to get your day going in this edition of daybreak. it's also available in the bloomberg anywhere app. customize your settings so you only get news on the industries and assets you care about. more ahead. this is bloomberg. ♪ paul: here's th

let's look cross asset, japanese yen and focus, boj governor ueda speaking. we are looking for anything that suggested two weeks time they could increase interest rates for the first time since 2007. wage data stronger and japan, 148 on the yen. jay powell does expect cuts to come through at some point this year but remains patient, so reiterating the message we have seen and heard from other fomc officials. 411 on the benchmark. brent, $82 a barrel. avril hong is standing behind singapore. what are you looking at? avril: japan first and foremost, the governor of the boj has been speaking in parliament, and what we have heard from them so far. he says the chance of reaching the target is inching higher little by little and they could start easing. they could mild easing if the boj hits the target. let's take a look at what we are seeing our across assets in japan as that boj play is coming into focus today as we heard chatter even before we heard in parliament. we had wage growth data showing acceleration to the fastest clip since june of last year, and that

financial sector of the boj's first rate hike in 17 years amid questions about leaks under governor ueda. paul: all right. we have just opened for trade in australia so let's take a look at how we are doing. modestly positive at the moment but of course we have the staggered it is hard to get a beat on how we are going. new zealand has been trading for a little while. currently a little softer to the tune of about .1%. suggesting we are setting up for a softer open. in australia we will get cpi numbers for the month of february. consumer confidence and retail sales as well. it will be a holiday shortened week. let's look at some movers on the asx at the moment. -- asx at the moment. performing reasonably well. materials up by about .10%. we are seeing the yields on the 10 year nudging back a little bit, holding above the 4% level. not a great deal of change for the aussie dollar. annabelle: we actually have u.s. futures opening here today fairly flat so far to start the week. thinking about the moves we had friday in the session, that rally in stocks lost a little bit of traction. it was

we are all waiting for any guidance from governor ueda that has 3:30 local time press conference. annabelle: julie on the ground but the of anticipating is injecting heat into the day. we are going to looking at all angles of the boj's pivotal decision. stating for discussions with former central bank officials and analysts including the ubs investment bank chief economist. coming up, nvidia unveils new chips eight aimed at extending its dominance. we keep the theme is going of central banks. the rba looking to extend its rate pause on tuesday. we will have a preview ahead. this is bloomberg. ♪ haidi: take a look at what we are tracking in terms of fx. the yen will be in focus. we could see more of an impact in terms of what the fed does later. this week from the bank of japan. we have seen the yen briefly strengthening before edging lower. the nikkei reported that the boj me change the framework tapping down rates against prevailing market trends and ending stock etf purchases as well. we continue to await for that momentous decision. there is another decision we are watching tod

with the exit of the zero policy by the boj which may happen in q2 though governor ueda was cautious about that we think it is definitely a mid-2024 event. we also see greater focus on equity, and it is not something we have seen and japan for probably 2-3 decades. for us, there is more to come and it justifies being overweight. yvonne: equities have been the standout year to date. and even outpacing what we see and bond performance. everyone was saying that bonds are back. when can bonds reassert themselves again? xavier: bonds remain totally relevant for investors. at the moment, investors have probably still a bit too much cash that they are hesitating to invest in the stock market that looks pretty strong and pretty robust. they should invest this cash into bonds. when you look at the u.s. 10 year, for instance, after the more volatile cpi data, we have seen the revision of the fed cut expectations to three times this year. yvonne: is there a chance they might not hike at all this year? xavier: our scenario is a true soft landing. the market is pricing something more than that. a

the path forward i think if i was ueda, i would say i dismantled the previous stuff, now we have gotlear sailing ahead of us. can't that just be victory? why do we have to talk about the next hike? francine: this goes to your column saying don't expect this to be the start of the cycle. more than a hundred $10 billion has been wiped off the value of apple. merrick garland said the iphone maker dominated the market by stifling inflation. >> apple strategy is exclusionary and hurts consumers and developers. for consumers, that means higher prices, lower quality phones and less innovation from competitors. francine: apple will defend against the lawsuit, describing it as wrong on the facts. with us is alex webb. what are they accused of? >> five things. preventing operations on the platform. apps where you can download services. it blocks gaming offerings so if you are accessing a cloud service when you text a phone that isn't an iphone you get a different message is on. tights integration excludes competitors. that is what the accusation is in it blocks apples wallet. francine: apple i

ueda if he races rates while the economy is contracting and things did not go well, so it is the kinding you want to avoid as a central banker. annabelle: i also went to want to understand first because the reading came in at 0.4%, but the consensus from the survey had to bend 0.1% expansion, so why was it weaker than what economists had been expecting? i think they overplayed revised figures. there are signs of concerning weakness in the economy, and that is the private consumption. inflation has been eating into household purchasing power, and we are still seeing that happening. the bank of japan is saying it is looking for a positive growth cycle where inflation is feeding wages and improved consumption, so at the moment there is not a great deal of evidence we have got the improved consumption because the private consumer spending has been falling for the last three quarters. haidi: the demand side does look wobbly and i wonder when it comes to spring wages rise demands, will they be strong enough to give the via jake conviction that they want to see? >> look, i think the boj is n

jgp yields will maintain the purchasing for japanese government bonds and the governor ueda says if theyee a sharp rise, they will respond. that language is keeping bond yields from behaving in a naughty fashion, for lack of a better term. take a look at the japanese yen which is weak today despite the fact they lifted out of the negative rate territory. a lot of traders and analysts we spoke to earlier today in asia said they believe it has been largely priced in because markets expected the bank of japan to lift out of the negative rate territory and we see the yen starting to weaken. the thing to watch out for is the excess volatility for the yen which could prompt managers out in japan. the weaker yen is supporting the nikkei 225 and topix which started tuesday in the red and rallied and secured solid gains in today's session. insurance corporations is one of the biggest gainers. they are expected to get the most bang for their buck. banks have been up 22% year to date. perhaps a bit of profit taking for the banks despite they will benefit from the exit of negative interest rates. th

. >> reporter: in order to answer your question, let's refer to governor ueda and the cabinet secretaryf japan. they are in lock-step today as they mark the historic day where japan is no longer in a situation where they are having negative interest rates. the message from the politicians and the central banker is policy will remain accommodative for the foreseeable future. there is always hedges for the bank of japan with these decisions, the reality is we are seeing an end to the negative interest rates and we are seeing rates inch up. 0.1% is hardly a hike. a lot depends on consumption going forward. we were waiting for the bank of japan to make the move. one was higher inflation which has been going for quite some time now. last friday, the news came in with the companies represented by the biggest labor union in japan would raise wages in april by 5%. those two factors are in place. that is why they are ending this so-called experiment. it was long overdue according to economists, but they took a cautious approach and made the move today. a lot will depend on what happens from here

governor ueda has been doing things every quarter.hen there is a quarter report with forecasts out, there will be a whole load of new forecasts out in errol including of the new fiscal year. we will also have a business sentiment survey out. they will be more hearings from the regions, from regional central bank officials. and the unions will also be updating their wage figures with more figures from smaller companies. and hey, they employ 70% of japan's workers, so it is also important to see if the wages are really spreading to the smaller businesses as well. so what this figure today needs to do, he needs to be so high that it convinces officials that there is no need to wait until april and that with this kind of momentum, small companies must be raising at a rapid pace too. haidi: we heard from the finance minister saying japan is not in deflation. they had said earlier in the month they were not considering a declaration either. but i wonder whether the jump in wages, the progress being made, is that feeding through to a better